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LQR House Secures $1M Purchase Order For SWOL Tequila From Cannon Estate Winery
BENZINGA
8:38 AM ET 01/10/2024
According to Justin Manuel, a majority owner of Cannon, Cannon Estate is currently developing a high-end lounge in the Fraser Valley, where SWOL will take center stage as the featured tequila. Leveraging key relationships established with leading distributors and retail outlets nationwide, Cannon Estate Winery intends to expand SWOL's presence across Canada. Given the government-regulated nature of Canada's alcohol market, Cannon Estate Winery aims to navigate and penetrate essential distribution channels to establish SWOL as a prominent brand beyond borders.
Our strategic collaboration with Cannon has resulted in a $1 million purchase order, which, in our view, lays the foundation for an ongoing expansion plan leveraging Cannon's established relationships and outlets.
Nordson Corporation Reports Fourth Quarter and Record Fiscal Year 2023 Results
Source: Business Wire
Fourth Quarter:
Sales were $719 million, a 5% increase over prior year
Operating profit was $185 million
EBITDA was a quarterly record of $227 million, 32% of sales
Earnings per diluted share were $2.22
Adjusted earnings per diluted share were $2.46
Full Year:
Record sales of $2.6 billion, reflecting 2% growth over last year’s record sales
EBITDA was a record $819 million, 31% of sales
Earnings per diluted share were $8.46
Adjusted earnings per diluted share were $9.03
2024 Guidance:
Fiscal 2024 forecasted sales growth of 4% to 9% and adjusted earnings in the range of 1% to 8% growth over fiscal 2023
Nordson Corporation (Nasdaq: NDSN) today reported results for the fiscal fourth quarter ended October 31, 2023. Sales were $719 million, a 5% increase compared to the prior year’s fourth quarter sales of $684 million. The increase in fourth quarter 2023 sales included the favorable 7% impact of acquisitions and favorable currency translation of 1%, offset by an organic decrease of 3%. The organic sales decrease was driven by electronics dispense and biopharma product lines, offset by strong growth in medical interventional solutions, industrial coatings and polymer processing product lines.
Operating profit in the quarter was $185 million, or 26% of sales. Adjusted operating profit, excluding $11 million in non-recurring acquisition costs, totaled $196 million, or 27% of sales. This was a 10% increase compared to prior year adjusted operating profit of $178 million. EBITDA in the quarter totaled a record $227 million, or 32% of sales, and represents an increase of 12% from the prior year EBITDA of $202 million.
Net income was $128 million, or earnings per diluted share of $2.22. Adjusted net income was $142 million, excluding $7 million of non-recurring financing costs related to the ARAG acquisition. Fourth quarter 2023 adjusted earnings per diluted share were $2.46 compared to prior year adjusted earnings per diluted share of $2.44. The increase was driven by higher sales, offset by higher interest expense.
Commenting on the Company’s fiscal 2023 fourth quarter results, Nordson President and Chief Executive Officer Sundaram Nagarajan said, “The diversification of Nordson’s precision technology portfolio and the progress of the Ascend strategy shined through again this quarter. Our medical interventional solutions and several industrial precision product lines delivered double-digit growth in the quarter, while demand weakness in electronics and biopharma end markets persisted as expected. Throughout this dynamic year, our winning teams have remained focused on meeting the needs of our customers. They demonstrated an owner mindset and responded rapidly over the course of the year to changing market conditions. This led to total company performance exceeding our incremental profit targets. I am also very pleased with the integration progress of our recent ARAG acquisition, which contributed favorably to the fourth quarter results.”
Fourth Quarter Segment Results
Industrial Precision Solutions sales of $405 million increased 14% compared to the prior year fourth quarter, driven by a 4% organic sales increase, a favorable acquisition impact of 7%, and a favorable currency impact of 2%. The organic sales increase was driven by record sales in our packaging, industrial coating and polymer processing product lines, largely driven by strong system sales in the Americas and Asia Pacific. Adjusted operating profit, which excludes non-recurring charges related to the ARAG acquisition, totaled $136 million in the quarter, or 34% of sales, an increase of 23% compared to the prior year operating profit. The increase in operating profit was driven by higher sales and improved sales mix.
Medical and Fluid Solutions sales of $169 million decreased 7% compared to the prior year fourth quarter, driven by an organic sales decrease of 8% that was partially offset by a favorable currency impact of 1%. The organic sales decrease was driven by continued softness in medical fluid components and fluid solutions product lines, partially offset by double-digit growth in our medical interventional solutions product lines. Operating profit totaled $48 million in the quarter, or 28% of sales, a decrease of 7% compared to the prior year operating profit due to lower sales volumes.
Advanced Technology Solutions sales of $145 million decreased 1% compared to the prior year fourth quarter, driven by an organic sales decrease of 16% that was principally offset by a favorable acquisition impact of 15% and a favorable currency impact of 1%. The organic sales decline was primarily driven by continued softness in our electronic dispense product lines, which serves the cyclical semiconductor end markets. Operating profit totaled $32 million in the quarter, or 22% of sales, a decrease of 16% compared to the prior year operating profit due to lower organic sales volume.
Fiscal 2023 Full Year Results
Sales for the fiscal year ended October 31, 2023, were a record $2.6 billion, an increase of 2% compared to the prior year. This sales growth was driven by a favorable acquisition impact of 4%, partially offset by a 1% decrease in organic volume and an unfavorable currency impact of 1%. Full year operating profit was $673 million. Net income was $487 million and diluted earnings per share were $8.46.
Adjusted operating profit, excluding $34 million in non-recurring costs, was $707 million, or 27% of sales, comparable to prior year adjusted operating profit of $707 million. EBITDA totaled a record $819 million, or 31% of sales. Adjusted diluted earnings per share were $9.03, a 4% decrease from the prior year earnings per diluted share of $9.43, primarily due to higher interest expense.
Reflecting on fiscal 2023, Mr. Nagarajan continued, “In 2021, we launched our Ascend strategy with the milestone of achieving $3 billion in annual sales and greater than 30% EBITDA margins by 2025. As we complete the third year of our strategy, we are on track toward achieving this objective. This is our third consecutive year of record sales, demonstrating the execution of the NBS Next growth framework, exciting acquisitions reflecting our strategic capital deployment, entrepreneurial owner mindset and the continued development of winning teams at every level of our organization. In fiscal 2024, we are well positioned for the recovery of select end markets and the related incremental earnings power that will come with that growth. The Ascend strategy is creating a scalable, high quality earnings growth engine. I want to thank Nordson’s employees and customers for all of their continued support.”
Outlook
Following three consecutive years of record setting performance and a strong finish to fiscal 2023, we enter fiscal 2024 with approximately $800 million in backlog. The book-to-bill in the fourth quarter and the majority of 2023 was unfavorable as over $200 million in backlog was consumed.
Based on the combination of order entry, backlog and current exchange rates, we anticipate delivering sales growth in the range of 4% to 9% in fiscal 2024 when compared to fiscal 2023. Full year fiscal 2024 adjusted earnings are forecasted in the range of 1% to 8% growth per diluted share.
First quarter fiscal 2024 sales are forecasted in the range of $615 to $640 million with adjusted earnings in the range of $2.00 to $2.10 per diluted share. Starting in fiscal 2024, the Company’s definition of adjusted earnings will exclude acquisition related amortization for both current and historical periods (see the appendix for historical amounts).
Nordson management will provide additional commentary on these results and outlook during its previously announced webcast on Thursday, December 14, 2023 at 8:30 a.m. eastern time, which can be accessed at https://investors.nordson.com. For persons unable to listen to the live broadcast, a replay will be available for 14 days after the event. Information about Nordson’s investor relations and shareholder services is available from Lara Mahoney, vice president, investor relations and corporate communications at (440) 204-9985 or lara.mahoney@nordson.com.
Certain statements contained in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by terminology such as “may,” “will,” “should,” “could,” “expects,” “anticipates,” “believes,” “projects,” “forecasts,” “outlook,” “guidance,” “continue,” “target,” or the negative of these terms or comparable terminology. These statements reflect management’s current expectations and involve a number of risks and uncertainties. These risks and uncertainties include, but are not limited to, U.S. and international economic conditions; financial and market conditions; currency exchange rates and devaluations; possible acquisitions, including the Company’s ability to successfully integrate acquisitions; the Company’s ability to successfully divest or dispose of businesses that are deemed not to fit with its strategic plan; the effects of changes in U.S. trade policy and trade agreements; the effects of changes in tax law; and the possible effects of events beyond our control, such as political unrest, including conflicts in Europe and the Middle East, acts of terror, natural disasters and pandemics, including the recent coronavirus (COVID-19) pandemic and the other factors discussed in Item 1A (Risk Factors) in the Company’s most recently filed Annual Report on Form 10-K and in its Forms 10-Q filed with the Securities and Exchange Commission, which should be reviewed carefully. The Company undertakes no obligation to update or revise any forward-looking statement in this press release.
Nordson Corporation is an innovative precision technology company that leverages a scalable growth framework through an entrepreneurial, division-led organization to deliver top tier growth with leading margins and returns. The Company’s direct sales model and applications expertise serves global customers through a wide variety of critical applications. Its diverse end market exposure includes consumer non-durable, medical, electronics and industrial end markets. Founded in 1954 and headquartered in Westlake, Ohio, the Company has operations and support offices in over 35 countries. Visit Nordson on the web at www.nordson.com, www.twitter.com/Nordson_Corp or www.facebook.com/nordson.
the unrestricted increased 75% + 1.8 Million…..
https://t.me/otcupdates/63865
$ARAT
💰1.3500
Pink Current, AS: 950M, OS: 126M, US: 4.2M
Held at DTC Shares Updated:
🔴 1,161,420 (2023-12-04)
🟢 1,109,420 (2024-01-08)
Difference: -4.5% (-52K)
Restricted Shares Updated:
🔴 123,777,614 (2023-12-04)
🟢 121,990,718 (2024-01-08)
Difference: -1.4% (-1.8M)
Unrestricted Shares Updated:
🔴 2,382,920 (2023-12-04)
🟢 4,169,816 (2024-01-08)
Difference: +75.0% (+1.8M)
Chart, OTC Profile, Twitter, @otcupdates
t.me/otcupdates
/63865
125
Fido Lending Interest Rate
LQR - LQR HSE INC COM 79.375%
NewtekOne, Inc. Announces Record Loan Closings for the Fourth Quarter and Full Year 2023
Source: GlobeNewswire Inc.
NewtekOne, Inc. (the “Company” or “NewtekOne”) (NASDAQ: NEWT), announced today that its nationally chartered bank subsidiary, Newtek Bank, N.A., closed a record $262.9 million of SBA 7(a) loans for the three months ended December 31, 2023, which represents a new quarterly record for the Company, and a 20.6% increase over the previous quarterly record of $218.0 million SBA 7(a) loans closed for the three months ended September 30, 2023. In addition, NewtekOne, through Newtek Small Business Finance and Newtek Bank, closed a record $828.1 million of SBA 7(a) loans for the twelve months ended December 31, 2023, a new annual record for the Company, and a 7.3% increase over $771.9 million of SBA 7(a) loans closed for the twelve months ended December 31, 2022. Newtek Bank currently expects to close $175 million to $200 million of SBA 7(a) loans in the first quarter of 2024, which would represent a 23% increase, at the midpoint of the range, from $152.5 million of SBA 7(a) loans closed in the first quarter 2023. Newtek Bank and the Company’s non-bank subsidiaries, closed a record $1.1 billion of loans, across all loan products, for the twelve months ended December 31, 2023, compared to $911.5 million for the same period in 2022.
Barry Sloane, Chairman, President and Chief Executive Officer commented, “According to the Small Business Administration’s (“SBA”) data on its website for the quarter ended December 31, 2023, which is NewtekOne’s fourth quarter 2023 and the SBA’s first fiscal quarter 2024, Newtek Bank was the largest SBA7(a) lender, including bank and non-bank lenders, by total approved dollar amount of SBA 7(a) loans. Further, in our first year as a bank holding company owning a nationally chartered bank, we are pleased to report that Newtek Bank closed a record $262.9 million of SBA 7(a) loans in the fourth quarter of 2023. In addition, on a consolidated basis, which includes loans closed by Newtek Bank as well as our non-bank subsidiaries, we closed a record $1.1 billion of loans across our multiple lending programs in 2023. We look forward to providing a more granular breakdown of loan closings across loan products during our full year 2023 earnings conference call, for which a date will be announced during the first quarter 2024. Our ability to generate assets for the balance sheet, deposits to fund that asset growth, and manage a well-capitalized bank and bank holding company are some of the many accomplishments that we look forward to reporting. We remain comfortable with fourth quarter and full year 2023, and full year 2024 previously stated guidance.”
About NewtekOne, Inc.
NewtekOne®, Your Business Solutions Company®, is a financial holding company, which along with its bank and non-bank consolidated subsidiaries (collectively, “NewtekOne”), provides a wide range of business and financial solutions under the Newtek® brand to the small- and medium-sized business (“SMB”) market. Since 1999, NewtekOne has provided state-of-the-art, cost-efficient products and services and efficient business strategies to SMB relationships across all 50 states to help them grow their sales, control their expenses and reduce their risk.
NewtekOne’s and its subsidiaries’ business and financial solutions include: banking (Newtek Bank, N.A.), Business Lending, SBA Lending Solutions, Electronic Payment Processing, Technology Solutions (Cloud Computing, Data Backup, Storage and Retrieval, IT Consulting), eCommerce, Accounts Receivable Financing & Inventory Financing, Insurance Solutions, Web Services, and Payroll and Benefits Solutions.
Newtek®, NewtekOne®, Newtek Bank®, Your Business Solutions Company® and One Solution for All Your Business Needs® are registered trademarks of NewtekOne, Inc.
Note Regarding Forward-Looking Statements
Certain statements in this press release are “forward-looking statements” within the meaning of the rules and regulations of the Private Securities Litigation and Reform Act of 1995. These statements are based on management’s current expectations and are subject to significant risks and uncertainties. Information regarding the Company, including loan closings, assets under supervision, capital ratios, risk-weighted assets, supplementary leverage ratios and balance sheet data consists of preliminary estimates. These estimates are forward-looking statements and are subject to change, possibly materially. See “Note Regarding Forward-Looking Statements” and the sections entitled “Risk Factors” in the Company's filings with the Securities and Exchange Commission available on NewtekOne's website (https://investor.newtekbusinessservices.com/sec-filings) and on the Securities and Exchange Commission’s website (www.sec.gov). Any forward-looking statements made by or on behalf of NewtekOne speak only as to the date they are made, and NewtekOne does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.
SOURCE: NewtekOne, Inc.
Investor Relations & Public Relations
Contact: Jayne Cavuoto
Telephone: (212) 273-8179 / jcavuoto@newtekone.com
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What a difference a day makes
Linde On Track for Largest Percent Decrease Since July 2022 -- Data Talk
Source: Dow Jones News
Linde plc (LIN) is currently at $408.44, down $18.28 or 4.28%
--On pace for largest percent decrease since July 5, 2022, when it fell 5.19%
--Snaps a three day winning streak
--Down 1.29% month-to-date
--Up 25.22% year-to-date; on pace for best year since 2021, when it rose 31.47%
--Down 4.28% from its all-time closing high of $426.72 on Dec. 12, 2023
--Up 19.42% from 52 weeks ago (Dec. 14, 2022), when it closed at $342.01
--Down 4.28% from its 52-week closing high of $426.72 on Dec. 12, 2023
--Up 33.7% from its 52-week closing low of $305.49 on Jan. 5, 2023
--Traded as low as $404.66
--Down 5.17% at today's intraday low; largest intraday percent decrease since March 15, 2023, when it fell as much as 5.35%
--Fourth worst performer in the S&P 500 today
All data as of 10:19:52 AM ET
Source: Dow Jones Market Data, FactSet
(END) Dow Jones Newswires
December 13, 2023 10:37 ET (15:37 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
AeroVironment Awarded $16 Million U.S. Navy Contract for the Advancement of Video Analytics and Computer Vision Research to Support Multi-Domain Robotics Initiatives
Source: Business Wire
AeroVironment, Inc. today announced it received a $16,098,922 cost-plus-fixed-fee contract from the U.S. Navy for the advancement of video analytics and computer vision research to support multi-domain robotics initiatives. This contract is in support of the Small Business Innovation Research Phase III “Automated Entity Classification in Video Using Soft Biometrics” and will be managed by the Naval Air Warfare Center Aircraft Division in Lakehurst, New Jersey.
AeroVironment's focus is on developing a video analytics software ecosystem for the government that can be used across platforms (both internal and external to AeroVironment) to provide enhanced situational awareness and capabilities for the warfighter in a wide range of mission areas.
“This is a multi-year effort that will allow us to explore and implement new research initiatives and provide critical processing capabilities to AeroVironment products, integration partners, and other research organizations,” said Jeff Rodrian, senior vice president and general manager for the MacCready Works Segment. “This investment will allow us to optimize how current Intelligence, Surveillance, Reconnaissance (ISR) and Targeting are performed throughout the United States DoD.”
Building on 50 years of innovation, AeroVironment draws from a legacy in multi-domain robotic systems; its pioneering autonomy and advanced perception capabilities serve as a force multiplier for warfighters today and tomorrow.
ABOUT AEROVIRONMENT, INC.
AeroVironment (NASDAQ: AVAV) is a global leader in intelligent multi-domain robotic systems, uncrewed aircraft and ground systems, sensors, software analytics, and connectivity. Headquartered in Arlington, Virginia, AeroVironment delivers actionable intelligence so our customers can proceed with certainty. For more information, visit www.avinc.com.
SAFE HARBOR STATEMENT
Certain statements in this press release may constitute "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements are made on the basis of current expectations, forecasts and assumptions that involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of our control, that may cause our business, strategy or actual results to differ materially from those expressed or implied. Factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to, our ability to perform under existing contracts and obtain additional contracts; changes in the regulatory environment; the activities of competitors; failure of the markets in which we operate to grow; failure to expand into new markets; failure to develop new products or integrate new technology with current products; and general economic and business conditions in the United States and elsewhere in the world. For a further list and description of such risks and uncertainties, see the reports we file with the Securities and Exchange Commission. We do not intend, and undertake no obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20231212709224/en/
Angela Schutt
AeroVironment, Inc.
pr@avinc.com
Linde On Pace for Record High Close -- Data Talk
Source: Dow Jones News
Linde plc (LIN) is currently at $422.69, up $14.45 or 3.54%
--Would be new all-time high (Based on available data back to June 17, 1992)
--On pace for largest percent increase since Feb. 24, 2023, when it rose 4.75%
--Currently up three consecutive days; up 6.03% over this period
--Best three day stretch since the three days ending Feb. 24, 2023, when it rose 7.12%
--Up 2.16% month-to-date
--Up 29.59% year-to-date; on pace for best year since 2021, when it rose 31.47%
--Up 23.43% from 52 weeks ago (Dec. 13, 2022), when it closed at $342.45
--Would be a new 52-week closing high
--Up 38.36% from its 52-week closing low of $305.49 on Jan. 5, 2023
--Traded as high as $434.21; new all-time intraday high (Based on available data back to June 17, 1992)
--Up 6.36% at today's intraday high; largest intraday percent increase since March 9, 2022, when it rose as much as 9.16%
--Third best performer in the S&P 500 today
All data as of 10:34:48 AM ET
Source: Dow Jones Market Data, FactSet
(END) Dow Jones Newswires
December 12, 2023 10:52 ET (15:52 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
AeroVironment Announces Fiscal 2024 Second Quarter Results
Source: Business Wire
AeroVironment, Inc. (“AeroVironment” or the “Company”) reported today financial results for the fiscal second quarter ended October 28, 2023.
Second Quarter Highlights:
Second quarter revenue of $180.8 million, up 62% year-over-year
Second quarter net income of $17.8 million and Adjusted EBITDA of $39.5 million, increases of 366% and 481%, year-over-year, respectively
Funded backlog of $487.0 million as of October 28, 2023
Increasing fiscal year 2024 revenue guidance to between $685 million and $705 million, including the recently completed acquisition of Tomahawk Robotics
“Our results exceeded expectations, underscored by the highest second quarter revenue in company history combined with strong bottom-line performance,” said Wahid Nawabi, AeroVironment chairman, president and chief executive officer. “Sales rose significantly year-over-year, reflecting increasing demand, strong operational execution and effective supply chain management. At the same time, we successfully completed the acquisition of Tomahawk Robotics, and we are well on our way to fully integrating these two great organizations – leveraging our combined technology to accelerate the implementation of AI and autonomy applications across our portfolio of unmanned platforms through a common operating platform.
“Given our standout performance and solid backlog, along with the addition of Tomahawk, we are again raising our revenue guidance for fiscal year 2024. Our optimism not only reflects near-term demand dynamics but also reflects an ongoing shift in battlefield priorities to the more frequent use of distributed, intelligent, multi-domain unmanned systems.”
FISCAL 2024 SECOND QUARTER RESULTS
Revenue for the second quarter of fiscal 2024 was $180.8 million, an increase of 62% as compared to $111.6 million for the second quarter of fiscal 2023, reflecting higher product sales of $83.4 million, partially offset by lower service revenue of $14.2 million. From a segment standpoint, the year-over-year increase was due to revenue growth in Unmanned Systems (“UMS”) of 115%, partially offset by decreases in MacCready Works (“MW”) of 6% and Loitering Munitions Systems (“LMS”) of 3%.
Gross margin for the second quarter of fiscal 2024 was $75.4 million, an increase of 191% as compared to $25.9 million for the second quarter of fiscal 2023, reflecting higher product margin of $43.8 million and higher service gross margin of $5.6 million. As a percentage of revenue, gross margin increased to 42% from 23%, primarily due to an increase in the proportion of product revenue to total revenue and a favorable product mix. Gross margin was favorably impacted by a decrease in depreciation charges for in-service assets of $7.1 million related to the closure of COCO site locations during fiscal year 2023. Gross margin was negatively impacted by $3.2 million of intangible amortization expense and other related non-cash purchase accounting expenses in the second quarter of fiscal 2024 as compared to $4.0 million in the second quarter of fiscal 2023.
Income from operations for the second quarter of fiscal 2024 was $25.2 million as compared to loss from operations of $(14.3) million for the second quarter of last fiscal year. The increase year-over-year was primarily due higher gross margin of $49.5 million, partially offset by increases in research and development (“R&D”) expense of $5.4 million and selling, general and administrative (“SG&A”) expense of $4.5 million.
Other loss, net, for the second quarter of fiscal 2024 was $4.8 million, as compared to $1.5 million for the second quarter of last fiscal year. The increase in other expense was primarily due to an increase in unrealized losses on investment holdings.
Provision for income taxes for the second quarter of fiscal 2024 was $1.1 million, as compared to a benefit from income taxes of $(10.5) million for the second quarter of last fiscal year. The increase in provision for income taxes was primarily due to the increase in pre-tax income.
Net income attributable to AeroVironment for the second quarter of fiscal 2024 was $17.8 million, or $0.66 per diluted share, as compared to net loss attributable to AeroVironment of $(6.7) million, or $(0.27) per diluted share, in the prior-year period, respectively.
Non-GAAP adjusted EBITDA for the second quarter of fiscal 2024 was $39.5 million and non-GAAP earnings per diluted share were $0.97, as compared to $6.8 million and $0.01, respectively, for the second quarter of fiscal 2023.
BACKLOG
As of October 28, 2023, funded backlog (defined as remaining performance obligations under firm orders for which funding is currently appropriated to us under a customer contract) was $487.0 million, as compared to $424.1 million as of April 30, 2023.
FISCAL 2024 — OUTLOOK FOR THE FULL YEAR
For fiscal year 2024, the Company now expects revenue of between $685 million and $705 million, net income of between $45 million and $51 million, Non-GAAP adjusted EBITDA of between $119 million and $127 million, earnings per diluted share of between $1.66 and $1.90 and non-GAAP earnings per diluted share, which excludes amortization of intangible assets, other non-cash purchase accounting expenses and equity securities investments gains or losses, of between $2.46 and $2.70.
The revised outlook includes the impacts of the recent acquisition of Tomahawk Robotics, Inc. The foregoing estimates are forward-looking and reflect management’s view of current and future market conditions, subject to certain risks and uncertainties, including certain assumptions with respect to our ability to efficiently and on a timely basis integrate acquisitions, obtain and retain government contracts, changes in the timing and/or amount of government spending, react to changes in the demand for our products and services, activities of competitors, changes in the regulatory environment, and general economic and business conditions in the United States and elsewhere in the world. Investors are reminded that actual results may differ materially from these estimates.
CONFERENCE CALL AND PRESENTATION
In conjunction with this release, AeroVironment, Inc. will host a conference call today, Tuesday, December 5, 2023, at 4:30 pm Eastern Time that will be webcast live. Wahid Nawabi, chairman, president and chief executive officer, Kevin P. McDonnell, chief financial officer and Jonah Teeter-Balin, senior director corporate development and investor relations, will host the call.
Investors may access the call by registering via the following participant registration link up to ten minutes prior to the start time.
Participant registration URL: https://register.vevent.com/register/BI64ffae409eb84e6c946d9347cf5e6c50
Investors may also listen to the live audio webcast via the Investor Relations page of the AeroVironment, Inc. website, http://investor.avinc.com. Please allow 15 minutes prior to the call to download and install any necessary audio software.
A supplementary investor presentation for the second quarter fiscal year 2024 can be accessed at https://investor.avinc.com/events-and-presentations.
Audio Replay
An audio replay of the event will be archived on the Investor Relations section of the Company's website at http://investor.avinc.com.
ABOUT AEROVIRONMENT, INC.
AeroVironment (NASDAQ: AVAV) provides technology solutions at the intersection of robotics, sensors, software analytics and connectivity that deliver more actionable intelligence so you can Proceed with Certainty. Headquartered in Virginia, AeroVironment is a global leader in intelligent, multi-domain robotic systems, and serves defense, government and commercial customers. For more information, visit www.avinc.com.
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “project,” “plan,” or words or phrases with similar meaning. Forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of our control, that may cause our business, strategy or actual results to differ materially from the forward-looking statements.
Factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to, the impact of our ability to successfully close and integrate acquisitions into our operations and avoid disruptions from acquisition transactions that will harm our business, including the acquisition of Tomahawk Robotics; the recording of goodwill and other intangible assets as part of acquisitions that are subject to potential impairments in the future and any realization of such impairments; any actual or threatened disruptions to our relationships with our distributors, suppliers, customers and employees, including shortages in components for our products; the ability to timely and sufficiently integrate international operations into our ongoing business and compliance programs; reliance on sales to the U.S. government, including uncertainties in classification, pricing or potentially burdensome imposed terms for certain types of government contracts; availability of U.S. government funding for defense procurement and R&D programs; changes in the timing and/or amount of government spending, including due to continuing resolutions; adverse impacts of a U.S. government shutdown; our reliance on limited relationships to fund our development of HAPS UAS; our ability to perform under existing contracts and obtain new contracts; risks related to our international business, including compliance with export control laws; potential need for changes in our long-term strategy in response to future developments; the extensive and increasing regulatory requirements governing our contracts with the U.S. government and international customers; the consequences to our financial position, business and reputation that could result from failing to comply with such regulatory requirements; unexpected technical and marketing difficulties inherent in major research and product development efforts; the impact of potential security and cyber threats or the risk of unauthorized access to and resulting misuse of our, our customers’ and/or our suppliers’ information and systems; changes in the supply and/or demand and/or prices for our products and services; increased competition; uncertainty in the customer adoption rate of commercial use unmanned aircraft systems; failure to remain a market innovator, to create new market opportunities or to expand into new markets; unexpected changes in significant operating expenses, including components and raw materials; failure to develop new products or integrate new technology into current products; any increase in litigation activity or unfavorable results in legal proceedings, including pending class actions; our ability to respond and adapt to unexpected legal, regulatory and government budgetary changes, including those resulting from the COVID-19 pandemic or future pandemics, such as supply chain disruptions and delays, potential governmentally-mandated shutdowns, travel restrictions and site access, diversion of government resources to non-defense priorities, and other business restrictions affecting our ability to manufacture and sell our products and provide our services; our ability to comply with the covenants in our loan documents; our ability to attract and retain skilled employees; the impact of inflation; and general economic and business conditions in the United States and elsewhere in the world; and the failure to establish and maintain effective internal control over financial reporting. For a further list and description of such risks and uncertainties, see the reports we file with the Securities and Exchange Commission. We do not intend, and undertake no obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise.
https://blockchain.entrexcarbonmarket.com/EntrexNewsFAQs.nsf/0/52F336B254FF0F1A85258A4C0066C0EC/%24File/2023-11-17%20-%20Entrex%20Carbon%20Market%20establishes%20Middle%20East%20footprint.pdf?Open
FOR IMMEDIATE RELEASE
Entrex Carbon Market establishes Middle East footprint thru a wholly owned subsidiary
Boca Raton, Fl, November 21, 2023: Entrex Carbon Market today announced it has established a wholly owned subsidiary: Entrex Middle East, for initiatives being launched in the UAE. The intent of the entity is to create and market various Entrex NewLeaf securities (short term, alternative yield, production financing bonds) and the series of Entrex CarbonEase securities (securitized sector focused carbon offsets) which can offer Sharia compliant investors access to efficient credible “compliance-grade” carbon offsets and production bonds.
“We believe distribution of our various securities efficiently throughout the Middle East will be paramount to a global solution for our securitized products” said Stephen H. Watkins CEO of the Entrex Carbon Market. “Offering comfort, credibility and convenience to the global brokerage community which services multi-national clients will provide a simple way to offer legitimate carbon offset securitized products to their clients.”
“Through the establishment of various Sharia compliant securities, we have been in discussions with multiple entities across the middle-east and see timing right to establish a foothold in that geography said Thomas Harblin. “By offer products that meet Middle East investors requirements we believe we offer a new value proposition to a significant capital and carbon offset community”. “We expect to announce some major relationship and commitments over the next few weeks” Harblin continued.
“The way Entrex offers securitized carbon offset securities is unique and leads the market in offer global carbon offset solutions to companies and the brokers that service them” said George D. Sullivan, CEO of Net Zero Analysis and Design Corp. “We’ve been working with Watkins and his team since 2019 and they constantly appear to lead the market in development of securities which service intuitional investor niches.”
About Entrex Carbon Market:
The Entrex Carbon Market created the first regulatory compliant trading portal for securitized “compliance-grade” carbon offsets. Entrex’s portal offers hundreds of carbon offset securities inclusive of short-term production financing bonds branded “NewLeaf Bonds” through the compliance-grade, institutionalized, carbon offsets, branded “CarbonEase” which are each regulated securities from inception through retirement. Each CarbonEase security allows global broker/dealers to access quality carbon offset products to serve their institutional clients which have third party assurance from beginning to end, affirmation of ownership and third-party research providing comfort to their institutional clients.
For further information: Stephen H. Watkins, CEO, Entrex Carbon Market: (561) 465-7580
AgEagle Announces Third Quarter 2023 Results
Source: GlobeNewswire Inc.
AgEagle Aerial Systems Inc. (NYSE American: UAVS) (“AgEagle” or the “Company”), an ?industry-leading? provider of full stack flight hardware, sensors and software for commercial and government use, today announces its financial results for the three and nine months ended September 30, 2023.
Third Quarter 2023 Financial Highlights
Revenues totaled $3.48 million for the three months ended September 30, 2023, decreasing 37% from $5.49 million reported for the same three-month period in the prior year. Nine-month revenues totaled $10.81 million in 2023, which were down 26% from $14.62 million for the first nine months of 2022.
The decrease in revenues was largely due to lower sales of the Company’s eBee™ series of drones – a decline that was expected in conjunction with the commercial launch of AgEagle’s new eBee VISION in September 2023.
Total operating expenses increased minimally to $7.20 million from $7.23 million for the three-month reporting periods ended September 30, 2023 and 2022. They were reduced by 28% to $19.24 million from $24.01 million for the comparable nine-month reporting periods.
Loss from operations increased 14% to $5.99 million from $5.15 million for the three months ended September 30, 2023 and 2022, respectively; and were reduced 17% to $15.02 million from $18.02 million for the nine months ended September 30, 2023 and 2022, respectively.
As of June 30, 2023, AgEagle’s cash position was $1.6 million, which compared to cash of $4.35 million as of December 31, 2022.
For more detailed information relating to the Company’s second quarter financial performance, please refer to the Interim Report on Form 10-Q filed yesterday afternoon with the U.S. Securities and Exchange Commission and accessible at www.sec.gov or on AgEagle’s website at www.ageagle.com.
Third Quarter 2023 Operational Highlights
The Company announced that DeltaQuad, a global leader in the development, design and production of electrical, long range Vertical Take-Off and Landing (“VTOL”) drones, is the first to fully integrate AgEagle’s latest sensor innovation, the RedEdge-P™ dual, in its new DeltaQuad EVO.
Commercial production of the Company’s next generation fixed-wing unmanned aerial system, the eBee™ VISION commenced and orders for the systems are now being accepted.
Kelluu Ltd., a privately-owned Finnish company engaged in the design, manufacture and operation of autonomous airships for aerial environmental and critical infrastructure monitoring and surveillance announced it has chosen to equip its growing fleet of unmanned airships with AgEagle’s high performance RedEdge-P™ multispectral cameras for collection of high-quality images and sensor data.
AgEagle completed an offering of 16,720,000 shares of common stock and 25,080,000 common stock purchase warrants (the "common warrant") to purchase 25,080,000 shares of common stock at a combined price of $0.25 per share and accompanying common warrants for aggregate gross proceeds of approximately $4.2 million, before deducting placement agent fees and other offering expenses.
Barrett Mooney, AgEagle’s Chairman and CEO, stated, “We enter the fourth quarter of 2023 optimistic about the Company’s long-term growth potential following the commercial release of our new eBee VISION drone. Given the rise in geopolitical conflicts and correlating increase in drone usage, we believe that AgEagle is well-positioned to support the increasing demand while remaining committed to achieving cost and productivity efficiencies and executing ongoing product innovation and our global marketing strategies.”
About AgEagle Aerial Systems Inc.
Through its three centers of excellence, AgEagle is actively engaged in designing and delivering best-in-class flight hardware, sensors and software that solve important problems for its customers. Founded in 2010, AgEagle was originally formed to pioneer proprietary, professional-grade, fixed-winged drones and aerial imagery-based data collection and analytics solutions for the agriculture industry. Today, AgEagle is a leading provider of full stack drone solutions for customers worldwide in the energy, construction, agriculture, and government verticals. For additional information, please visit our website at www.ageagle.com.
Forward-Looking Statements
This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements involve risks and uncertainties that could negatively affect our business, operating results, financial condition, and stock price. Factors that could cause actual results to differ materially from management’s current expectations include those risks and uncertainties relating to our competitive position, the industry environment, potential growth opportunities, and the effects of regulation and events outside of our control, such as natural disasters, wars, or health epidemics. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions, or circumstances on which any such statement is based, except as required by law.
AgEagle Aerial Systems Contacts:
Investor Relations:
Email: UAVS@ageagle.com
Media:
Email: media@ageagle.com
SYSTEMS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
As of
September 30, 2023 December 31, 2022
(unaudited)
ASSETS
CURRENT ASSETS:
Cash $ 1,600,143 $ 4,349,837
Accounts receivable, net 2,015,045 2,213,040
Inventories, net 6,063,935 6,685,847
Prepaid and other current assets 832,188 1,029,548
Notes receivable 185,000 185,000
Total current assets 10,696,311 14,463,272
Property and equipment, net 597,964 791,155
Right of use assets 3,498,051 3,952,317
Intangible assets, net 9,242,659 11,507,653
Goodwill 21,679,411 23,179,411
Other assets 336,091 291,066
Total assets $ 46,050,487 $ 54,184,874
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable $ 2,125,689 $ 1,845,135
Accrued liabilities 1,650,609 1,680,706
Promissory note 2,625,000 287,381
Contract liabilities 329,536 496,390
Current portion of lease liabilities 840,535 628,113
Current portion of COVID loans 306,722 446,456
Total current liabilities 7,878,091 5,384,181
Long term portion of lease liabilities 2,756,056 3,161,703
Long term portion of COVID loans 509,184 446,813
Defined benefit plan obligation — 106,163
Long term portion of promissory note 1,470,000 1,861,539
Total liabilities 12,613,331 10,960,399
COMMITMENTS AND CONTINGENCIES (SEE NOTE 10)
STOCKHOLDERS’ EQUITY:
Preferred Stock, $0.001 par value, 25,000,000 shares authorized:
Preferred Stock, Series F Convertible, $0.001 par value, 35,000 shares authorized, 6,275 shares issued and outstanding as of September 30, 2023, and 5,863 shares issued and outstanding as of December 31, 2022, respectively 6 6
Common Stock, $0.001 par value, 250,000,000 shares authorized, 117,878,831 and 88,466,613 shares issued and outstanding as of September 30, 2023, and December 31, 2022, respectively 117,880 88,467
Additional paid-in capital 167,523,676 154,679,363
Accumulated deficit (134,374,548 ) (111,553,444 )
Accumulated other comprehensive income 170,142 10,083
Total stockholders’ equity 33,437,156 43,224,475
Total liabilities and stockholders’ equity $ 46,050,487 $ 54,184,874
See accompanying notes to these condensed consolidated financial statements.
AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(UNAUDITED)
For the Three Months Ended
September 30, For the Nine Months Ended
September 30,
2023 2022 2023 2022
Revenues $ 3,483,932 $ 5,490,714 $ 10,819,213 $ 14,620,565
Cost of sales 2,269,858 3,407,573 6,594,973 8,622,436
Gross Profit 1,214,074 2,083,141 4,224,240 5,998,129
Operating Expenses:
General and administrative 3,357,550 4,175,090 10,435,834 14,093,655
Research and development 1,368,394 1,818,540 4,320,216 6,185,777
Sales and marketing 978,243 1,236,841 2,911,963 3,736,548
Impairment 1,500,000 — 1,579,287 —
Total Operating Expenses 7,204,187 7,230,471 19,247,300 24,015,980
Loss from Operations (5,990,113 ) (5,147,330 ) (15,023,060 ) (18,017,851 )
Other Income (Expense):
Interest expense, net (399,651 ) (6,727 ) (994,751 ) (29,776 )
Gain (loss) on debt extinguishment (1,523,867 ) 6,486,899 (1,523,867 ) 6,486,899
Other income (expense), net (106,497 ) 332,110 (368,532 ) 27,372
Total Other Income (Expense), net (2,030,015 ) 6,812,282 (2,887,150 ) 6,484,495
Net Income (Loss) Before Income Taxes (8,020,128 ) 1,664,952 (17,910,210 ) (11,533,356 )
Provision for income taxes — — — —
Net Income (Loss) $ (8,020,128 ) $ 1,664,952 $ (17,910,210 ) $ (11,533,356 )
Net Income (Loss) Per Common Share – Basic $ (0.07 ) $ 0.02 $ (0.18 ) $ (0.14 )
Net Income (Loss) Per Common Share – Diluted $ (0.07 ) $ 0.01 $ (0.18 ) $ (0.14 )
Weighted Average Number of Shares Outstanding During the Period – Basic 111,083,155 85,966,687 98,976,085 81,004,011
Weighted Average Number of Shares Outstanding During the Period – Diluted 111,083,155 113,623,789 98,976,085 81,004,011
Comprehensive Income (Loss):
Net Income (Loss) attributable to common stockholders $ (8,020,128 ) $ 1,664,952 $ (17,910,210 ) $ (11,533,356 )
Amortization of unrecognized periodic pension costs (742 ) 97,846 43,302 100,487
Foreign currency cumulative translation adjustment (7,027 ) (372,368 ) 116,757 (220,060 )
Total comprehensive income (loss), net of tax (8,027,897 ) 1,390,430 (17,750,151 ) (11,652,929 )
Accrued dividends on Series F Preferred Stock (49,122 ) (94,694 ) (170,277 ) (94,694 )
Deemed dividend on Series F Preferred Stock and warrants — — (4,910,894 ) —
Total comprehensive income (loss) available to common stockholders $ (8,077,019 ) $ 1,295,736 $ (22,831,322 ) $ (11,747,623 )
See accompanying notes to these condensed consolidated financial statements.
AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the Nine Months Ended
September 30,
2023 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (17,910,210 ) $ (11,533,356 )
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation 1,125,209 3,058,741
Depreciation and amortization 3,027,644 2,887,244
Defined benefit plan obligation and other (188,653 ) (148,851 )
Amortization of debt discount and warrant modification 612,712 —
(Loss) gain on debt extinguishment 1,523,867 (6,486,899 )
Goodwill impairment 1,500,000 —
Lease impairment charge 79,287
Changes in assets and liabilities:
Accounts receivable, net 223,208 (396,617 )
Inventories, net 660,208 (2,221,569 )
Prepaid expenses and other assets 237,815 22,579
Accounts payable 264,123 (281,937 )
Accrued expenses and other liabilities (28,133 ) (193,818 )
Contract liabilities (169,352 ) (307,610 )
Other 212,606 433,357
Net cash used in operating activities (8,829,669 ) (15,168,736 )
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (95,004 ) (250,379 )
Payment of acquisition-related liabilities — (6,610,900 )
Capitalization of platform development costs (297,596 ) (635,568 )
Capitalization of internal use software costs (171,516 ) (565,894 )
Net cash used in investing activities (564,116 ) (8,062,741 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Sales of Common Stock, net of issuance costs 3,817,400 4,583,341
Sale of Preferred Stock, Series F Convertible, net of issuance costs 3,000,000 9,920,000
Exercise of stock options — 74,350
Repayments on COVID loans (87,052 ) (173,313 )
Net cash provided by financing activities 6,730,348 14,404,378
Effects of foreign exchange rates on cash flows (86,257 ) (460,980 )
Net decrease in cash (2,749,694 ) (9,288,079 )
Cash at beginning of period 4,349,837 14,590,566
Cash at end of period $ 1,600,143 $ 5,302,487
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest cash paid $ — $ —
Income taxes paid $ — $ —
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Conversion of Preferred Stock, Series F Convertible to Common Stock $ 7,305 $ 5,950
Issuance of Restricted Common Stock $ 388 $ 316
Dividends on Series F Preferred Stock $ 170,277 $ 94,694
Deemed dividend on Series F Preferred stock and warrant $ 4,910,894 $ —
Stock consideration for senseFly Acquisition $ — $ 3,000,000
Settlement of Common Stock from contingent liability related to Measure $ — $ 2,812,500
See accompanying notes to condensed consolidated financial statements.
Primary Logo
AgEagle to Provide Secure Drones Using SEALSQ Certified Secure Element for Defense and Public Safety Applications
Source: GlobeNewswire Inc.
AgEagle Aerial Systems Inc. (NYSE: UAVS) a leading provider of full stack drone, sensors and software solutions for customers worldwide in the commercial and government verticals, and SEALSQ Corp (Nasdaq: LAES) (“SEALSQ”) a company that focuses on developing and selling Semiconductors, PKI and Post-Quantum technology hardware and software products, today announced their partnership to provide secure surveillance drones for public safety, government and defense applications.
In September 2023, AgEagle launched the eBee VISION, a cyber secure Unmanned Aerial System (UAS) designed for Intelligence Surveillance and Reconnaissance (ISR) missions. The eBee VISION embeds a SEALSQ Secure Element which is NIST FIPS140-2 Level 3 compliant and Common Criteria EAL5+ certified. Each chip is personalized with a unique Trusted Identity. This setup protects the drone from any takeover attempt, enables the drone to encrypt all data, protects the integrity of the embedded software, and provides a unique identity to the drone for GCS pairing and strong authentication.
These robust cybersecurity features, added to its unique operational capabilities, make the eBee VISION perfectly suitable to conduct public safety and defense applications. Indeed, the eBee VISION UAS is part of the U.S. Department of Defense (DoD)’s Defense Innovation Unit (DIU) project to develop a customized command and control software that is compatible and fully compliant with the DoD Robotic and Autonomous System-Air Interoperability Profile (RAS-A IOP), within the scope of the Blue UAS program.
The global commercial drone market is projected to reach the size of around $38 billion in 2027 and the market is expected to grow at a CAGR of 7.9 percent between 2022 and 2027 according to Statista. Key sectors such as public safety, security, defense, and inspection are at the forefront of this growth, most of them demanding robust privacy, encryption and security features.
eBee VISION delivers high-resolution video imagery made possible by its 32x zoom and powerful thermal observation capabilities, providing real-time situational awareness. Weighing only 3.5 pounds, the NDAA-compliant fixed-wing features live HD video feed, up to 90 minutes of flight time, and wireless coverage of up to 12 miles. eBee VISION can be deployed in just three minutes by a single operator and is controlled with a Ground Control System (GCS) developed with feedback from U.S. and European special forces to meet defense and public safety requirements.
“With an established track record in supplying leaders of the Commercial Drone Industry, SEALSQ is perfectly positioned to support manufacturers build cybersecure UAVs and achieve fast and cost-effective compliance with the most rigorous agencies standards,” said Carlos Moreira, CEO of SEALSQ.
AgEagle CEO, Barrett Mooney, added, “With the launch of our latest drone technology, the eBee VISION, we are dedicated to ensuring it integrates a certified secure element—a critical feature for safeguarding the data managed by our valued partners in public safety, government, and defense. Our partnership with industry leader SEALSQ underscores our commitment to protecting privacy and security.”
About AgEagle Aerial Systems Inc.:
Through its three centers of excellence, AgEagle is actively engaged in designing and delivering best-in-class flight hardware, sensors and software that solve important problems for its customers. Founded in 2010, AgEagle was originally formed to pioneer proprietary, professional-grade, fixed-winged drones and aerial imagery-based data collection and analytics solutions for the agriculture industry. Today, AgEagle is a leading provider of full stack drone solutions for customers worldwide in the energy, construction, agriculture, and government verticals. For additional information, please visit our website at www.ageagle.com
About SEALSQ:
SEALSQ focuses on selling integrated solutions based on Semiconductors, PKI and Provisioning services, while developing Post-Quantum technology hardware and software products. Our solutions can be used in a variety of applications, from Multi-Factor Authentication tokens, Smart Energy, Smart Home Appliances, and IT Network Infrastructure, to Automotive, Industrial Automation and Control Systems.
Post-Quantum Cryptography (PQC) refers to cryptographic methods that are secure against an attack by a quantum computer. As quantum computers become more powerful, they may be able to break many of the cryptographic methods that are currently used to protect sensitive information, such as RSA and Elliptic Curve Cryptography (ECC). PQC aims to develop new cryptographic methods that are secure against quantum attacks.
For more information, please visit www.sealsq.com
AgEagle Aerial Systems Contacts:
Investor Relations:
Email: UAVS@ageagle.com
Media:
Email: media@ageagle.com
Primary Logo
We applied to list our common stock on the Nasdaq Capital Market under the symbol “WETH”. We believe that upon completion of the Underwritten Offering contemplated by this prospectus, we will meet the standards for listing on the Nasdaq Capital Market. No assurance can be given that our application will be approved or that the trading prices of our common stock on the OTCQB will be indicative of the prices of our common stock if our common stock were traded on the Nasdaq Capital Market. This Underwritten Offering is contingent upon the listing of our common stock on the Nasdaq Capital Market.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
AMENDMENT NO. 4 TO
FORM S-1
https://www.otcmarkets.com/filing/html?id=17066344&guid=W9J-k69wzo89dth
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
https://www.otcmarkets.com/filing/html?id=17056751&guid=W9J-k69wzo89dth
EyePoint Pharmaceuticals Reports Third Quarter 2023 Financial Results and Highlights Recent Corporate Developments
Source: GlobeNewswire Inc.
EyePoint Pharmaceuticals, Inc. (NASDAQ: EYPT), a company committed to developing and commercializing therapeutics to improve the lives of patients with retinal diseases, today announced financial results for the third quarter ended September 30, 2023, and highlighted recent corporate developments.
“We continued advancing EYP-1901 through clinical development in the third quarter, announcing positive masked safety results for our lead product candidate EYP-1901 in the ongoing DAVIO 2 and PAVIA Phase 2 clinical trials,” said Jay Duker, M.D., President and Chief Executive Officer of EyePoint Pharmaceuticals. “We remain on-track to report topline data for the DAVIO 2 trial in wet AMD in December 2023 and the PAVIA trial in non-proliferative diabetic retinopathy in the second quarter of 2024. We also plan to initiate the Phase 2 VERONA trial of EYP-1901 in diabetic macular edema in the first quarter of 2024.”
Dr. Duker continued, “It is an exciting time for EyePoint as we are well-positioned to execute on key near-term milestones and drive value for shareholders. We remain laser focused on our mission of making a difference in the lives of patients suffering from retinal diseases.”
R&D Highlights and Updates
Accepted to present at the upcoming American Academy of Ophthalmology (AAO) Annual Meeting in November, including at AAO’s Eyecelerator pre-meeting tomorrow, November 2, 2023. At Eyecelerator, the Company will be presenting interim masked safety data through October 1, 2023 from its ongoing DAVIO 2 and PAVIA Phase 2 clinical trials.
At the AAO Annual Meeting, EyePoint will be presenting an encore presentation of preclinical data highlighting the potential neuroprotective effect of vorolanib, the active drug in EYP-1901, against photoreceptor degeneration in a validated rodent retinal detachment model.
Presented subgroup analyses of the Phase 1 DAVIO trial of EYP-1901 demonstrating reduced treatment burden in wet AMD at the EURETINA Congress and the Retina Society Annual Meeting in October.
Presented a comparison of the antiangiogenic profile of tyrosine kinase inhibitors vorolanib, axitinib, and sunitinib at the Retina Society Annual Meeting in October demonstrating effective inhibition of receptors involved in pathological angiogenesis with vorolanib not having a physiological impact on TIE 2 function.
Announced EYP-2301, razuprotafib (a TIE-2 agonist) in Durasert E as a potential sustained delivery treatment for patients with serious retinal diseases.
Presented interim masked safety and baseline patient demographics of the DAVIO 2 clinical trial in wet AMD at the OIS Retina Innovation Summit in July. In addition to positive safety data, an analysis of the reported patient demographics suggests that Phase 2 DAVIO 2 patients have, on average, better starting visual acuity and less central subfield thickness than the Phase 1 DAVIO cohort.
Presented 12-month ocular pharmacokinetic results from a study evaluating EYP-1901’s drug delivery through the Durasert platform at the American Society of Retina Specialists (ASRS) Annual Meeting in July. The Company also presented an encore subgroup analysis of the EYP-1901 final twelve-month Phase 1 DAVIO results, which showed that 67% of the DAVIO patients with no excess fluid at screening did not require a supplemental anti-VEGF injection up to the six-month visit.
Plans to initiate VERONA, a Phase 2 clinical trial evaluating EYP-1901 in diabetic macular edema (DME) in the first quarter of 2024 remain on track.
Recent Corporate Highlights
Announced the promotion of George Elston to Executive Vice President and the appointment of Stuart M. Duty to the Company’s Board of Directors in October 2023.
Appointed Jay S. Duker, M.D. as President and Chief Executive Officer and member of the Board of Directors as part of a CEO transition in July 2023. Dr. Duker was previously Chief Operating Officer and President. Nancy S. Lurker transitioned to the role of Executive Vice Chair of the Board of Directors from the position of CEO.
Appointed Marcia Sellos-Moura, Ph.D. as Senior Vice President, Program Leadership on July 31, 2023. Dr. Sellos-Moura brings over 20 years of biopharmaceutical experience to the Company.
Review of Results for the Third Quarter Ended September 30, 2023
For the third quarter ended September 30, 2023, total net revenue was $15.2 million compared to $10.0 million for the quarter ended September 30, 2022. Net product revenue for the third quarter was $0.8 million, compared to net product revenues for the third quarter ended September 30, 2022 of $9.7 million. The decrease in net product revenue resulted from sale of the YUTIQ franchise in May 2023 and the discontinuation of DEXYCU commercialization activities in 2023.
Net revenue from royalties and collaborations for the third quarter ended September 30, 2023 totaled $14.4 million compared to $0.3 million in the corresponding period in 2022. The increase was primarily due to partial recognition of deferred revenue from the sale of the YUTIQ franchise which will be recognized over a 2-year period in connection with the delivery of YUTIQ supply units.
Operating expenses for the third quarter ended September 30, 2023 totaled $29.6 million versus $28.4 million in the prior year period. This increase was primarily driven by R&D spending on the ongoing EYP-1901 clinical trials, partially offset by reduced sales and marketing expense. Non-operating expense, net, totaled $1.8 million and net loss was $12.6 million, or ($0.33) per share, compared to a net loss of $18.4 million, or ($.49) per share, for the prior year period.
Cash and investments at September 30, 2023 totaled $136.0 million compared to $144.6 million at December 31, 2022.
Financial Outlook
We expect the cash, cash equivalents and investments on September 30, 2023 will enable us to fund our current and planned operations into 2025.
Conference Call Information
EyePoint will host a conference call today, at 8:30 a.m. ET to discuss the results for the third quarter ended September 30, 2023 and recent corporate developments. To access the live conference call, please register at https://register.vevent.com/register/BI3b701846a11841ad855aab9d0b8aff10. A live audio webcast of the event can be accessed via the Investors section of the Company website at www.eyepointpharma.com. A webcast replay will also be available on the corporate website at the conclusion of the call.
About EyePoint Pharmaceuticals
EyePoint Pharmaceuticals (Nasdaq: EYPT) is a company committed to developing and commercializing therapeutics to help improve the lives of patients with serious retinal diseases. The Company's pipeline leverages its proprietary erodible Durasert E™ technology for sustained intraocular drug delivery including EYP-1901, an investigational sustained delivery intravitreal anti-VEGF treatment currently in Phase 2 clinical trials. The proven Durasert® drug delivery platform has been safely administered to over 80,000 patient eyes across four U.S. FDA approved products. EyePoint Pharmaceuticals is headquartered in Watertown, Massachusetts. For more information visit www.eyepointpharma.com.
EYEPOINT SAFE HARBOR STATEMENTS UNDER THE PRIVATE SECURITIES LITIGATION ACT OF 1995: To the extent any statements made in this press release deal with information that is not historical, these are forward-looking statements under the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements regarding the sufficiency of our existing cash resources into 2025; our plans and any other statements about future expectations, prospects, estimates and other matters that are dependent upon future events or developments, including statements containing the words “will,” “potential,” “could,” “can,” “believe,” “intends,” “continue,” “plans,” “expects,” “anticipates,” “estimates,” “may,” other words of similar meaning or the use of future dates. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Uncertainties and risks may cause EyePoint’s actual results to be materially different than those expressed in or implied by EyePoint’s forward-looking statements. For EyePoint, this includes uncertainties regarding the timing and clinical development of our product candidates, including EYP-1901; the potential for EYP-1901 as a novel sustained delivery treatment for serious eye diseases, including wet age-related macular degeneration, non-proliferative diabetic retinopathy and diabetic macular edema; our ability to realize the anticipated benefits of the 2023 sale of YUTIQ® to Alimera Sciences including our potential to receive additional payments from Alimera pursuant to the our agreements with Alimera; our ability to manufacture YUTIQ in sufficient quantities pursuant to our commercial supply agreements with Alimera and Ocumension Therapeutics; the effectiveness and timeliness of clinical trials, and the usefulness of the data; the timeliness of regulatory approvals; the success of current and future license agreements, including our agreements with Alimera, Ocumension, Equinox Science and Betta Pharmaceuticals; termination or breach of current and future license agreements; our dependence on contract research organizations, co-promotion partners, and other outside vendors and service providers; effects of competition; market acceptance of our products, including our out-licensed products; product liability; industry consolidation; compliance with environmental laws; risks and costs of international business operations; volatility of stock price; possible dilution; the impact of instability in general business and economic conditions, including changes in inflation, interest rates and the labor market; the extent to which COVID-19 impacts our business and the medical community; protection of our intellectual property and avoiding intellectual property infringement; retention of key personnel; manufacturing risks; the sufficiency of the Company’s cash resources and need for additional financing; and other factors described in our filings with the Securities and Exchange Commission. We cannot guarantee that the results and other expectations expressed, anticipated or implied in any forward-looking statement will be realized. A variety of factors, including these risks, could cause our actual results and other expectations to differ materially from the anticipated results or other expectations expressed, anticipated, or implied in our forward-looking statements. Should known or unknown risks materialize, or should underlying assumptions prove inaccurate, actual results could differ materially from past results and those anticipated, estimated, or projected in the forward-looking statements. You should bear this in mind as you consider any forward-looking statements. Our forward-looking statements speak only as of the dates on which they are made. EyePoint undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Investors:
Christina Tartaglia
Stern IR
Direct: 212-698-8700
christina.tartaglia@sternir.com
Media Contact:
Amy Phillips
Green Room Communications
Direct: 412-327-9499
aphillips@greenroompr.com
EYEPOINT PHARMACEUTICALS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
September 30, December 31,
2023 2022
Assets
Current assets:
Cash and cash equivalents $ 133,035 $ 95,633
Marketable securities 2,977 48,928
Accounts and other receivables, net 483 15,503
Prepaid expenses and other current assets 9,091 9,858
Inventory 4,577 2,886
Total current assets 150,163 172,808
Operating lease right-of-use assets 5,250 6,038
Other assets 4,630 1,510
Total assets $ 160,043 $ 180,356
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued expenses $ 22,997 $ 22,278
Deferred revenue 39,841 1,205
Short-term borrowings - 10,475
Other current liabilities 1,058 579
Total current liabilities 63,896 34,537
Long-term debt - 29,310
Deferred revenue - noncurrent 32,341 13,557
Operating lease liabilities - noncurrent 5,185 5,984
Other long-term liabilities - 600
Total liabilities 101,422 83,988
Stockholders' equity:
Capital 785,827 766,933
Accumulated deficit (728,047 ) (671,351 )
Accumulated other comprehensive income 841 786
Total stockholders' equity 58,621 96,368
Total liabilities and stockholders' equity $ 160,043 $ 180,356
EYEPOINT PHARMACEUTICALS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
Three Months Ended
September 30, Nine Months Ended
September 30,
2023 2022 2023 2022
Revenues:
Product sales, net $ 816 $ 9,720 $ 13,483 $ 30,048
License and collaboration agreements 14,137 52 17,768 160
Royalty income 249 240 739 663
Total revenues 15,202 10,012 31,990 30,871
Operating expenses:
Cost of sales, excluding amortization of acquired intangible assets 1,202 1,405 3,634 4,916
Research and development 17,363 11,162 46,711 34,099
Sales and marketing 479 6,016 11,504 19,592
General and administrative 10,556 9,212 28,854 26,321
Amortization of acquired intangible assets - 615 - 1,845
Total operating expenses 29,600 28,410 90,703 86,773
Loss from operations (14,398 ) (18,398 ) (58,713 ) (55,902 )
Other income (expense):
Interest and other income, net 1,786 640 4,611 1,067
Interest expense - (662 ) (1,247 ) (2,408 )
Loss on extinguishment of debt - - (1,347 ) (1,559 )
Total other expense, net 1,786 (22 ) 2,017 (2,900 )
Net loss $ (12,612 ) $ (18,420 ) $ (56,696 ) $ (58,802 )
Net loss per common share - basic and diluted $ (0.33 ) $ (0.49 ) $ (1.50 ) $ (1.58 )
Weighted average common shares outstanding - basic and diluted 38,341 37,338 37,804 37,305
Primary Logo
https://s201.q4cdn.com/865305287/files/doc_financials/2023/q3/BKNG-Q3-2023-Earnings-Release.pdf
Booking Holdings Reports Financial Results for 3rd Quarter 2023
NORWALK, CT – November 2, 2023. . . Booking Holdings Inc. (NASDAQ: BKNG) (the "Company," "we," "our," or "us") today reported its third quarter 2023 financial results:
•
• Room nights booked increased 15% from the prior-year quarter.
24% from
Gross travel bookings, which refers to the total dollar value, generally inclusive of taxes and fees, of all
travel services booked by our customers, net of cancellations, were $39.8 billion, an increase of
21%
• Total revenues were $7.3 billion, an increase of 21% from the prior-year quarter (approximately an 18%
the prior-year quarter (approximately a
increase on a constant-currency basis).
increase on a constant-currency basis).
• Net income was $2.5 billion, an increase of 51% from the prior-year quarter.
• Net income per diluted common share was $69.80, an increase of 66% from the prior-year quarter.
• Non-GAAP net income was $2.6 billion, an increase of 24% from the prior-year quarter.
• Non-GAAP net income per diluted common share was $72.32, an increase of 36% from the prior-year quarter.
• Adjusted EBITDA was $3.3 billion, an increase of 24% from the prior-year quarter.
The section below under the heading "Non-GAAP Financial Measures" provides definitions and information about the use of non-GAAP financial measures in this press release, and the attached financial and statistical supplement reconciles non-GAAP financial results with Booking Holdings' financial results under GAAP.
"We are pleased to report record quarterly room nights, gross bookings, revenue, and net income driven by a strong summer travel season," said Glenn Fogel, Chief Executive Officer of Booking Holdings. "We are encouraged by the resilience of leisure travel demand, and we remain focused on executing against our key strategic priorities, which helps position our business well for the long term."
1
Non-GAAP Financial Measures
The Unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and include all normal and recurring adjustments that management of the Company considers necessary for a fair presentation of its financial position and operating results.
To supplement the Unaudited Consolidated Financial Statements, the Company uses the following non-GAAP financial measures: adjusted EBITDA, non-GAAP net income (loss), non-GAAP net income (loss) per diluted common share and free cash flow (net cash provided by (used in) operating activities less capital expenditures). The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
The Company uses non-GAAP financial measures for financial and operational decision-making and as a basis to evaluate performance and set targets for employee compensation programs. The Company believes that these non- GAAP financial measures are useful for analysts and investors to evaluate the Company's ongoing operating performance because they facilitate comparison of the Company's results for the current period and projected next- period results to those of prior periods and to those of its competitors (though other companies may calculate similar non-GAAP financial measures differently from those calculated by the Company). These non-GAAP financial measures, in particular adjusted EBITDA, non-GAAP net income (loss) and free cash flow, are not intended to represent funds available for Booking Holdings' discretionary use and are not intended to represent or to be used as a substitute for operating income (loss), net income (loss) or net cash provided by (used in) operating activities as measured under GAAP. The items excluded from these non-GAAP measures, but included in the calculation of their closest GAAP equivalent, are significant components of the Company's consolidated statements of operations and cash flows and must be considered in performing a comprehensive assessment of overall financial performance.
Non-GAAP net income (loss) is net income (loss) with the following adjustments:
• excludes accruals related to settlements of certain indirect tax matters,
• excludes the termination fee related to an acquisition agreement,
• excludes significant losses on assets classified as held for sale,
• excludes significant gains and losses on sale and leaseback transactions,
• excludes gains and losses on equity securities with readily determinable fair values,
• excludes the impact, if any, of significant gains and losses on the sale of and impairment and credit losses
on investments in available-for-sale debt securities and significant gains and losses on the sale of and impairment and other valuation adjustments on investments in equity securities without readily determinable fair values,
• excludes foreign currency transaction gains and losses on the remeasurement of Euro-denominated debt and accrued interest that are not designated as hedging instruments for accounting purposes and debt- related foreign currency derivative instruments used as economic hedges,
• excludes amortization expense of intangible assets,
• excludes interest received on tax payments refunded pursuant to settlement with authorities,
• excludes the impact of net unrecognized tax benefits related to certain income tax matters, and
• the income tax impact of the non-GAAP adjustments mentioned above and changes in tax estimates, as
applicable.
In addition to the adjustments listed above regarding non-GAAP net income (loss), adjusted EBITDA excludes depreciation expense, interest expense, and to the extent not included in the adjustments listed above, interest and dividend income, and income tax expense (benefit). In the event the Company reports a GAAP net income but a non-GAAP net loss, dilutive shares that are included in the GAAP weighted-average number of diluted common shares outstanding are excluded from the non-GAAP weighted-average number of diluted common shares outstanding. In the event the Company reports a GAAP net loss but a non-GAAP net income, anti-dilutive shares that are excluded from the GAAP weighted-average number of diluted common shares outstanding are included in the non-GAAP weighted-average number of diluted common shares outstanding.
We evaluate certain operating and financial measures on both an as-reported and constant-currency basis. We calculate constant currency by converting our current-year period results for transactions recorded in currencies
2
other than U.S. Dollars using the corresponding prior-year period monthly average exchange rates rather than the current-year period monthly average exchange rates.
The attached financial and statistical supplement includes reconciliations of our financial results under GAAP to non-GAAP financial information for the three and nine months ended September 30, 2023 and 2022. We are not able to provide a reconciliation between forward-looking adjusted EBITDA and GAAP net income (loss) because we cannot predict certain components of such reconciliation without unreasonable effort as they arise from events in future periods.
Information About Forward-Looking Statements
This press release contains forward-looking statements, which reflect the views of the Company's management regarding current expectations based on currently available information about future events. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, such as: adverse changes in market conditions for travel services; the effects of competition; the Company's ability to manage growth and expand; the adverse impact of the COVID-19 pandemic; adverse changes in relationships with third parties on which the Company depends; success of the Company's marketing efforts; rapid technological and other market changes; the Company's ability to attract and retain qualified personnel; changes in the presentation of travel search results and the auctions for search placement; impacts of impairments and changes in accounting estimates; and other business and industry changes. Other risks and uncertainties relate to cyberattacks and information security; tax, legal, and regulatory risks; the Company's facilitation of payments; foreign currency exchange rates; financial risks relating to the Company's debt levels and stock price volatility; and the success of the Company's investments and acquisition strategy. For a detailed discussion of these and other risk factors that could cause the Company's actual results to differ materially from those described in the forward-looking statements included in this press release, refer to the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any subsequently filed Quarterly Reports on Form 10-Q. Unless required by law, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.
We will be posting our prepared remarks to the Booking Holdings investor relations website after the conclusion of the earnings call.
About Booking Holdings Inc.
Booking Holdings (NASDAQ: BKNG) is the world's leading provider of online travel and related services, provided to consumers and local partners in more than 220 countries and territories through six primary consumer- facing brands: Booking.com, Priceline, Agoda, Rentalcars.com, KAYAK and OpenTable. The mission of Booking Holdings is to make it easier for everyone to experience the world. For more information, visit BookingHoldings.com and follow us on X (formerly known as Twitter) @BookingHoldings.
###
For Press Information: Leslie Cafferty communications@bookingholdings.com
For Investor Relations: John Longstreet ir@bookingholdings.com #BKNG_Earnings
3
Booking Holdings Inc. CONSOLIDATED BALANCE SHEETS (In millions, except share and per share data)
September 30, 2023
December 31, 2022
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 13,294 $ 12,221
Short-term investments (Available-for-sale debt securities:
Amortized cost of $632 and $176, respectively) 624 175
Accounts receivable, net (Allowance for expected credit losses of $116 and $117,
respectively) 3,447 2,229
Prepaid expenses, net 680 477
Other current assets 434 696
Total current assets 18,479 15,798
Property and equipment, net 733 669
Operating lease assets 643 645
Intangible assets, net 1,660 1,829
Goodwill 2,804 2,807
Long-term investments (Includes available-for-sale debt securities:
Amortized cost of $576 at December 31, 2022) 420 2,789
Other assets, net 896 824
Total assets $ 25,635 $ 25,361
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
Current liabilities:
Accounts payable $ 3,020 $ 2,507
Accrued expenses and other current liabilities 4,182 3,244
Deferred merchant bookings 3,717 2,223
Short-term debt 1,913 500
Total current liabilities 12,832 8,474
Deferred income taxes 350 685
Operating lease liabilities 547 552
Long-term U.S. transition tax liability 515 711
Other long-term liabilities 160 172
Long-term debt 11,856 11,985
Total liabilities 26,260 22,579
Commitments and contingencies
Stockholders' (deficit) equity:
Common stock, $0.008 par value,
Authorized shares: 1,000,000,000
Issued shares: 64,032,162 and 63,780,528, respectively — —
Treasury stock: 28,843,826 and 25,917,558 shares, respectively (38,944) (30,983)
Additional paid-in capital 6,996 6,491
Retained earnings 31,608 27,541
Accumulated other comprehensive loss (285) (267)
Total stockholders' (deficit) equity (625) 2,782
Total liabilities and stockholders' (deficit) equity $ 25,635 $ 25,361
4
Booking Holdings Inc.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except share and per share data)
Three Months Ended September 30,
2023 2022
Nine Months Ended September 30,
2023 2022
Merchant revenues $ 3,945 $ 2,614 $ 8,467 $ 5,413
Agency revenues 3,135 3,203 7,346 6,954
Advertising and other revenues 261 235 768 674
Total revenues 7,341 6,052 16,581 13,041
Operating expenses:
Marketing expenses 2,022 1,795 5,340 4,679
Sales and other expenses 723 540 1,931 1,344
Personnel, including stock-based compensation of $128, $101,
$369, and $302, respectively 788 636 2,262 1,867
General and administrative 387 262 980 627
Information technology 187 129 468 400
Depreciation and amortization 129 109 370 327
Restructuring, disposal, and other exit activities 2 (2) 4 40
Total operating expenses 4,238 3,469 11,355 9,284
Operating income 3,103 2,583 5,226 3,757
Interest expense (254) (102) (689) (246)
Other income (expense), net 300 (305) 533 (1,040)
Income before income taxes 3,149 2,176 5,070 2,471
Income tax expense 638 510 1,003 648
Net income $ 2,511 $ 1,666 $ 4,067 $ 1,823
Net income applicable to common stockholders per basic common
share $ 70.62 $ 42.10 $ 111.09 $ 45.20
Weighted-average number of basic common shares outstanding (in
000's) 35,570 39,564 36,615 40,326
Net income applicable to common stockholders per diluted common
share $ 69.80 $ 41.98 $ 110.02 $ 45.00
Weighted-average number of diluted common shares outstanding (in
000's) 35,987 39,671 36,971 40,504
5
Booking Holdings Inc.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions)
Nine Months Ended September 30,
2023 2022
OPERATING ACTIVITIES:
Net income $ 4,067 $ 1,823
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 370 327
Provision for expected credit losses and chargebacks 224 179
Deferred income tax benefit (409) (246)
Net losses on equity securities 151 1,142
Stock-based compensation expense and other stock-based payments 369 302
Operating lease amortization 120 117
Unrealized foreign currency transaction gains related to Euro-denominated debt (2) (70)
Other 3 40
Changes in assets and liabilities:
Accounts receivable (1,506) (1,358)
Prepaid expenses and other current assets 96 (424)
Deferred merchant bookings and other current liabilities 2,644 3,591
Long-term assets and liabilities (129) (1,042)
Net cash provided by operating activities 5,998 4,381
INVESTING ACTIVITIES:
Purchase of investments (12) (751)
Proceeds from sale and maturity of investments 1,785 30
Additions to property and equipment (251) (293)
Other investing activities 3 (14)
Net cash provided by (used in) investing activities 1,525 (1,028)
FINANCING ACTIVITIES:
Proceeds from the issuance of long-term debt 1,893 —
Payment on maturity of debt (500) (1,102)
Payments for repurchase of common stock (7,889) (4,278)
Proceeds from exercise of stock options 122 7
Other financing activities (45) (3)
Net cash used in financing activities (6,419) (5,376)
Effect of exchange rate changes on cash and cash equivalents and restricted cash and
cash equivalents (29) (83)
Net increase (decrease) in cash and cash equivalents and restricted cash and cash
equivalents 1,075 (2,106)
Total cash and cash equivalents and restricted cash and cash equivalents, beginning of
period 12,251 11,152
Total cash and cash equivalents and restricted cash and cash equivalents, end of period $ 13,326 $ 9,046
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for income taxes $ 1,573 $ 501
Cash paid during the period for interest $ 557 $ 240
6
Booking Holdings Inc.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (In millions, except share and per share data) (1)
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
Three Months Ended September 30,
2023 2022
Nine Months Ended September 30,
2023 2022
Net income $ 2,511 $ 1,666 $ 4,067 $ 1,823
(a) Accrualsrelatedtosettlementsofindirecttaxmatters — — 62 —
(b) Terminationfeerelatedtoanacquisitionagreement 90 — 90 —
(c) Depreciation and amortization 129 109 370 327
(d) Lossonassetsclassifiedasheldforsale — — — 36
(c) Interest and dividend income (289) (61) (783) (88)
(c) Interest expense 254 102 689 246
(e) Net (gains) losses on equity securities (16) 336 151 1,142
(f) Foreign currency transaction gains on the remeasurement of
certain Euro-denominated debt and accrued interest and debt-
related foreign currency derivative instruments (36) (2) (2) (80)
(c) Income tax expense 638 510 1,003 648
Adjusted EBITDA $ 3,284 $ 2,658 $ 5,648 $ 4,054
Net income as a % of Total Revenues 34.2 % 27.5 % 24.5 % 14.0 %
Adjusted EBITDA as a % of Total Revenues 44.7 % 43.9 % 34.1 % 31.1 %
RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME AND NON-GAAP NET INCOME APPLICABLE TO COMMON STOCKHOLDERS PER DILUTED COMMON SHARE
Three Months Ended September 30,
2023 2022
Nine Months Ended September 30,
2023 2022
Net income $ 2,511 $ 1,666 $ 4,067 $ 1,823
(a) Accrualsrelatedtosettlementsofindirecttaxmatters — — 62 —
(b) Terminationfeerelatedtoanacquisitionagreement 90 — 90 —
(d) Lossonassetsclassifiedasheldforsale — — — 36
(e) Net(gains)lossesonequitysecurities (16) 336 151 1,142
(f) Foreign currency transaction gains on the remeasurement of
certain Euro-denominated debt and accrued interest and debt-
related foreign currency derivative instruments (36) (2) (2) (80)
(g) Amortizationofintangibleassets 55 55 166 167
(h) Interestreceivedonrefundedtaxpayments — — (31) —
(i) Net unrecognized tax benefits related to French income tax
matters — 125 — 125
(j) Tax impact of Non-GAAP adjustments (4) (76) (71) (173)
Non-GAAP Net income $ 2,602 $ 2,104 $ 4,433 $ 3,041
GAAP and Non-GAAP weighted-average number of diluted
common shares outstanding (in 000's) 35,987 39,671 36,971 40,504
Net income applicable to common stockholders per diluted
common share $ 69.80 $ 41.98 $ 110.02 $ 45.00
Non-GAAP Net income applicable to common stockholders per
diluted common share $ 72.32 $ 53.03 $ 119.92 $ 75.07
7
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES Nine Months Ended TO FREE CASH FLOW September 30,
2023 2022
(1) Amounts may not total due to rounding.
Notes:
(a) Accruals related to settlements of certain indirect tax matters are recorded in General and administrative expenses and
excluded from Net income to calculate Non-GAAP Net income and Adjusted EBITDA.
(b) Termination fee related to the acquisition agreement for the Etraveli Group is recorded in General and administrative expenses and excluded from Net income to calculate Non-GAAP Net income and Adjusted EBITDA.
(c) Amounts are excluded from Net income to calculate Adjusted EBITDA.
(d) Loss on assets classified as held for sale is recorded in Restructuring, disposal, and other exit activities and excluded
from Net income to calculate Non-GAAP Net income and Adjusted EBITDA.
(e) Net (gains) losses on equity securities with readily determinable fair values and impairments of investments in equity securities are recorded in Other income (expense), net and excluded from Net income to calculate Non-GAAP Net income and Adjusted EBITDA.
(f) Foreign currency transaction gains on the remeasurement of Euro-denominated debt and accrued interest that are not designated as hedging instruments for accounting purposes and debt-related foreign currency derivative instruments used as economic hedges are recorded in Other income (expense), net and excluded from Net income to calculate Non- GAAP Net income and Adjusted EBITDA.
(g) Amortization of intangible assets is recorded in Depreciation and amortization expenses and excluded from Net income to calculate Non-GAAP Net income.
(h) Interest received on tax payments refunded pursuant to settlement with authorities is recorded in Other income (expense), net and Income tax expense, as applicable, and excluded from Net income to calculate Non-GAAP Net income.
(i) Net unrecognized tax benefits related to French income tax matters is recorded in Income tax expense and excluded from Net income to calculate Non-GAAP Net income.
(j) Reflects the tax impact of Non-GAAP adjustments above and changes in tax estimates which are excluded from Net income to calculate Non-GAAP Net income.
(k) Cash used for additions to property and equipment is included in the calculation of Free cash flow.
For a more detailed discussion of the adjustments described above, please see the section in this press release under the heading "Non-GAAP Financial Measures" which provides definitions and information about the use of non-GAAP
OTC Updates
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OTC Updates
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Nov 15 at 03:20
Camtek Receives Order for 28 Systems from a tier-1 manufacturer for High Bandwidth Memory (HBM) and Heterogenous Integration (HI) Applications
Source: PR Newswire (US)
Since the beginning of the third quarter to-date, Camtek has received orders for 240 systems
MIGDAL HAEMEK, Israel, Nov. 13, 2023 /PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced that it has received a new order for 28 systems from a tier-1 manufacturer, for the inspection & metrology of High Bandwidth Memory (HBM) and Heterogenous Integration (HI) applications. This order adds to the already strong backlog of systems that are expected to be delivered during 2024.
Camtek Ltd. Logo
HBM is a critical component in chips enabling high-speed data processing in applications ranging from artificial intelligence and gaming to data centers.
HI is a new technology which can lead to higher overall chip performance, energy efficiency and reduced footprint, by enabling the integration of various components such as processors, memory and sensors, all into a single package.
Camtek's state-of-the-art inspection and metrology systems play a pivotal role in ensuring the quality, reliability and performance of the chip leveraging today's newest chip fabrication technologies.
Rafi Amit, CEO of Camtek commented, "Our strong momentum continues into the fourth quarter of 2023, with the receipt of this significant 28 system order from a leading tier-1 manufacturer. Since the beginning of the third quarter we have received orders for 240 systems which solidifies our expectations of a strong year and record 2024 for Camtek."
For more information about Camtek Ltd. and its advanced inspection and metrology solutions, please visit www.camtek.com.
ABOUT CAMTEK LTD.
Camtek is a developer and manufacturer of high-end inspection and metrology equipment for the semiconductor industry. Camtek's systems inspect IC and measure IC features on wafers throughout the production process of semiconductor devices, covering the front and mid-end and up to the beginning of assembly (Post Dicing). Camtek's systems inspect wafers for the most demanding semiconductor market segments, including Advanced Interconnect Packaging, Heterogenous Integration, Memory and HBM, CMOS Image Sensors, Compound Semiconductors, MEMS, and RF, serving numerous industry's leading global IDMs, OSATs, and foundries.
With manufacturing facilities in Israel and Germany, and eight offices around the world, Camtek provides state of the art solutions in line with customers' requirements.
This press release is available at www.camtek.com
This press release contains statements that may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on Camtek's current beliefs, expectations and assumptions about its business and industry, all of which may change. Forward-looking statements can be identified by the use of words including "believe," "anticipate," "should," "intend," "plan," "will," "may," "expect," "estimate," "project," "positioned," "strategy," and similar expressions that are intended to identify forward-looking statements, including our expectations and statements relating to the compound semiconductors market and our position in this market and the anticipated timing of delivery of the systems. These forward-looking statements involve known and unknown risks and uncertainties that may cause the actual results, performance or achievements of Camtek to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that may cause our actual results to differ materially from those contained in the forward-looking statements include, but are not limited to, the future contribution of HBM and Chiplet applications to the Company business, the impact of any new or revised export and/or import and doing-business regulations or sanctions, such as changes in U.S. trade policies; the effect of the evolving nature of the recent war in Gaza between Israel and the Hamas; and those other factors discussed in our Annual Report on Form 20-F and other documents filed by the Company with the SEC as well as other documents that may be subsequently filed by Camtek from time to time with the SEC. We caution you not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Camtek does not assume any obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release unless required by law.
While we believe that we have a reasonable basis for each forward-looking statement contained in this press release, we caution you that these statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. In addition, any forward-looking statements represent Camtek's views only as of the date of this press release and should not be relied upon as representing its views as of any subsequent date. Camtek does not assume any obligation to update any forward-looking statements unless required by law.
CAMTEK LTD.
Moshe Eisenberg, CFO
Tel: +972 4 604 8308
Mobile: +972 54 900 7100
moshee@camtek.com
INTERNATIONAL INVESTOR RELATIONS
EK Global Investor Relations
Ehud Helft
Tel: (US) 1 212 378 8040
camtek@ekgir.com
Logo - https://mma.prnewswire.com/media/1534463/Camtek_logo.jpg
Cision View original content:https://www.prnewswire.com/news-releases/camtek-receives-order-for-28-systems-from-a-tier-1-manufacturer-for-high-bandwidth-memory-hbm-and-heterogenous-integration-hi-applications-301986179.html
SOURCE Camtek Ltd.
Copyright 2023 PR Newswire
OTC Updates
🚨 $ARAT
💰1.1500
Pink Current, AS: 950M, OS: 126M, US: 2.4M
Outstanding Shares Updated:
🔴 123,818,980 (2023-10-30)
🟢 126,160,534 (2023-11-13)
Difference: +1.9% (+2.3M)
Restricted Shares Updated:
🔴 121,436,060 (2023-10-30)
🟢 123,777,614 (2023-11-13)
Difference: +1.9% (+2.3M)
Lumen wins $110 million contract from Defense Information Systems Agency
Source: PR Newswire (US)
Company will provide mission-critical fiber and network services
WASHINGTON, Nov. 7, 2023 /PRNewswire/ -- Lumen Technologies (NYSE: LUMN) recently won an approximately $110 million contract from the U.S. Defense Information Systems Agency (DISA) to provide secure, mission-critical network services to the U.S. Department of Defense.
Lumen wins $110 million contract from DISA. Under this new contract, Lumen will operate and maintain the Defense Information Systems Agency's fiber backbone.
"Lumen's robust fiber network delivers always-on, 24/7 services that power the U.S. Department of Defense."
"Lumen's robust fiber network delivers always-on, 24/7 services that power the U.S. Department of Defense," said Jason Schulman, Lumen national vice president, federal sales. "DISA leverages the Lumen network's strength, diversity and resiliency to achieve its mission of connecting and protecting America's service men and women who help defend our nation."
Under this new contract, Lumen will operate and maintain DISA's fiber backbone, which includes colocation facilities, dark fiber, diverse end-to-end network infrastructure, new fiber builds, and system updates that use new technologies to improve network resilience, decrease latency and increase availability. This award is an extension of an existing network services contract DISA previously awarded to Lumen.
Tech Talk:
The contract has a ceiling of approximately $110 million over a five-year period of performance from November 30, 2023, through September 30, 2028.
Lumen provides more than 11,000 fiber miles in support of the U.S. Department of Defense Information Network.
Lumen proudly supports military and civilian agencies' IT modernization efforts with the security and reliability government agencies need to carry out their important missions.
Additional Resources:
Learn more about our $223 million contract from the U.S. Defense Information Systems Agency to provide secure, mission-critical communications services: https://news.lumen.com/2023-02-02-Lumen-wins-223-million-Defense-Information-Systems-Agency-contract
Learn more about our Defense Information Systems Agency $1.5 billion award to provide network transport to the U.S. Indo-Pacific Command Area of Responsibility: http://news.lumen.com/2022-11-01-Lumen-wins-1-5-billion-Defense-Information-Systems-Network-contract
Learn more about our U.S. Department of Agriculture $1.2 billion network services award: https://news.lumen.com/2022-01-20-U-S-Department-of-Agriculture-awards-Lumen-1-2-billion-network-services-contract
Learn more about our U.S. Department of the Interior $1.6 billion network services award: https://news.lumen.com/2020-01-16-U-S-Dept-of-the-Interior-Awards-CenturyLink-1-6-Billion-EIS-Network-Services-Win
Learn more about how Lumen is supporting the public sector here:
https://www.lumen.com/public-sector.html
About Lumen Technologies:
Lumen connects the world. We are igniting business growth by connecting people, data, and applications – quickly, securely, and effortlessly. Everything we do at Lumen takes advantage of our network strength. From metro connectivity to long-haul data transport to our edge cloud, security, and managed service capabilities, we meet our customers' needs today and as they build for tomorrow. For news and insights visit news.lumen.com, LinkedIn: /lumentechnologies, Twitter: @lumentechco, Facebook: /lumentechnologies, Instagram: @lumentechnologies and YouTube: /lumentechnologies. Learn more about Lumen's public policy positions and public sector capabilities on Twitter at @lumengov and on LinkedIn at @lumenpublicsector.
Lumen Logo (PRNewsfoto/Lumen)
https://finance.yahoo.com/news/emergent-health-apollo-biowellness-announce-130000607.html
News Direct
Tue, May 23, 2023
Former L'Oréal President and Emergent’s CEO promoted to Emergent Chairman of the Board successor Announced
New York, NY, --News Direct-- Emergent Health Corp.
Emergent Health Corp. (OTC: EMGE), a curator, developer, and marketer of products in the Regenerative Health Space announced today that it will be collaborating with Apollo Biowellness, Inc., the entity that Boustead has engaged to conduct an IPO of the roll up of the regenerative medicine space, previously announced by Emergent on May 18, 2023. Apollo is an aggregate of manufacturing, distribution and marketing of regenerative products and brands in the regenerative space.
This partnership, along with the previously announced spin-off of PharmaZu will continue to build significant value to Emergent.
As part of the roll-up being conducted by Boustead and Apollo Biowellness, effective June 1, 2023, Mr. Morrison will take over as President/CEO of Apollo Biowellness.
Mr. Morrison will remain as a member of the Board of Directors of the Emergent and will assume the Title of Chairman of the Board. He will continue to be intimately involved with Emergent and the continued development, marketing and distribution of its products and brands, The two companies will coordinate marketing strategies, manufacturing and work together to expand the products and brands.
Jim Morrison stated, “Since taking the helm of Emergent, I have enjoyed the process of creating the Company’s vibrant products and brands in the regenerative biologic space. The opportunity to coordinate between Emergent and Apollo and expand the value of these products and brands as President of Apollo Biowellness is an exciting opportunity and will bring expanded value to Emergent. I look forward to continuing to be involved in the dynamic offerings of Emergent going forward.”
Jim Zimbler, a member of the Board of Directors, and previously the President of the Company, has been re-appointed as Interim President of the Company, also effective June 1, 2023. In addition to bringing on new senior management, the Company will be announcing a new CFO and a will conduct a new executive search for a new permanent full time CEO to work with the current management and Board and team and Mr. Morrison and the Apollo Biowellness team. The Company will announce more Management updates shortly.
Jim Zimbler stated, “Jim Morrison has done a magnificent job during his tenure as President, and I know he will be a tremendous asset to Apollo Biowellness. I look forward to a close continued relationship with Mr. Morrison and leaning on him for his sizable experience and tutelage related to products and brands. That will greatly enhance the value Emergent will receive from the sale of Evolutionary Biologics and the other entities.”
ABOUT EMERGENT HEALTH CORPORATION
Emergent curates, develops and sells products in the Regenerative Health Space. Its products comprise of ingestibles as well as topicals for the whole family. The company distributes its products online and through Content Based Shopping using Influencers to position products in their produced content throughout the United States and Internationally. Its subsidiaries; PharmaZu, is a pure play, e-commerce products and service provider focused on the Pet Community, Pet Pharmacy and Pet Wellness using Influencers and their content, including the pet pharmacy, vet telehealth and pet wellness businesses. Evolutionary Biologics, is a new kind of biologics company founded for a clear purpose: bring cutting edge regenerative products to the medical community. Emergent does not claim any of its products are approved by the FDA to diagnose, treat, cure or prevent any disease. For more information, please visit Emergent's Website and Social Media on Twitter.
Before using any products, you should always consult with your Veterinarian and/or Family Doctor.
SAFE HARBOR STATEMENT
This press release contains forward-looking statements that can be identified by terminology such as “believes,” “expects,” “potential,” “plans,” “suggests,” “may,” “should,” “could,” “intends,” or similar expressions. Many forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results implied by such statements. These factors include, but are not limited to, our ability to continue to enhance our products and systems to address industry changes, our ability to expand our customer base and retain existing customers, our ability to effectively compete in our market segment, the lack of public information on our company, our ability to raise sufficient capital to fund our business, operations, our ability to continue as a going concern, and a limited public market for our common stock, among other risks. Many factors are difficult to predict accurately and are generally beyond the company's control. Forward-looking statements speak only as to the date they are made, and we do not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
FOR MORE INFORMATION, PLEASE CONTACT:
Jim Morrison, Chairman of the Board
James W. Zimbler – Interim President/Interim CEO
Emergent Health Corporation Website
info@emergenthealthcompany.com
Contact Details
Emergent Health Corp.
info@emergenthealthcompany.com
Company Website
https://emergenthealthcompany.com/
View source version on newsdirect.com: https://newsdirect.com/news/emergent-health-and-apollo-biowellness-announce-strategic-collaboration-263943770
A2Z Announces Proposed Spin-Off of Advanced Automotive Innovations Inc
https://finance.yahoo.com/news/a2z-announces-proposed-spin-off-140000145.html?s=09
A2Z Smart Technologies Corp.
Thu, Nov 9, 2023 at 9:00 AM EST4 min read
In This Article:
AZ
-0.72%
TEL AVIV, ISRAEL / ACCESSWIRE / November 9, 2023 / A2Z Smart Technologies Corp. ("A2Z" or the "Company") (NASDAQ:AZ)(TSXV:AZ) ($AZ), a global leader in innovative technology solutions, is pleased to announce the unanimous approval of a plan by its Board of Directors to spin off its 80% interest in Advanced Automotive Innovations Inc ("AAI").
As part of the restructuring, AAI is expected to become a publicly traded company, such that all shareholders in A2Z will receive an equivalent pro-rata shareholding in AAI. The Board has authorized the engagement of experienced legal, financial, tax, securities, and other consultants and auditors to oversee the entire restructuring process. The restructuring is subject to receipt of all corporate and shareholder approvals as well as receipt of all regulatory approvals including that of the TSX Venture Exchange. The Company anticipates that the restructuring will be completed in Q2, 2024.
AAI specializes in the automotive safety sector and is currently developing a groundbreaking "Fuel Tank Inertia Capsule System" ("FTICS") designed to prevent fuel combustion in the event of a vehicle collision. AAI holds a patent with the U.S. Department of Commerce for FTICS and is actively working towards the commercialization of a product that can be seamlessly integrated into automobile gasoline tanks.
Gadi Graus, President of A2Z, stated, "We believe that the pioneering and lifesaving "Fuel Tank Inertia Capsule System" being developed by AAI has remarkable potential. This proposed spin-off represents a significant opportunity for AAI to further the development of the system as an independent company, to realize its maximum potential, and to allow A2Z to concentrate its resources more fully on the Cust2mate smart cart solution. We are committed to ensuring that the transition is executed seamlessly and efficiently. We look forward to the exciting developments and value creation that we believe this strategic decision will bring to A2Z and AAI and to enhancing our shareholders' value."
Further press releases will be forthcoming as the restructuring progresses.
For more information on A2Z Subsidiary Cust2Mate, please visit www.cust2mate.com. For details on investing in A2Z (NASDAQ:AZ) ($AZ), visit www.a2zas.com.
About A2Z Smart Technologies Corp.
A2Z Smart Technologies Corp. creates innovative solutions for complex challenges. A2Z's flagship product is an advanced proven-in-use mobile self-checkout shopping chart. With its user-friendly smart algorithm, touch screen, and computer-vision system, Cust2Mate streamlines the retail shopping experience by scanning purchased products and enabling in-cart payment so that customers can simply "pick & go", and bypass long cashier checkout lines. This results in a more efficient shopping experience for customers, less unused shelf-space and manpower requirements, and advanced command and control capabilities for store managers.
Cautionary Statement Regarding Forward-looking Statements
The TSX Venture Exchange Inc. has in no way passed upon the merits of the Company and has neither approved nor disapproved the contents of this press release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors - including the availability of funds, the results of financing efforts and the risks relating to our business -- that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time on SEDAR (see www.sedar.com) and with the Securities and Exchange Commission (see www.sec.gov). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This press release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities described herein in the United States or elsewhere.
Company Contact:
Gadi Graus, President
Gadi.g@a2zas.com
03-3732328
Investor Contacts:
Brett Maas, Managing Principal, Hayden IR, LLC
brett@haydenir.com
(646) 536-7331
SOURCE: A2Z Smart Technologies Corp.
Prospect Capital Announces September 2023 Financial Results and Declares Steady Monthly Dividends through January 2024 of $0.06 Per Common Share
Source: GlobeNewswire Inc.
Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”, “our”, or “we”) today announced financial results for our fiscal quarter ended September 30, 2023.
FINANCIAL RESULTS
All amounts in $000’s except
per share amounts (on weighted average
basis for period numbers)
Quarter Ended Quarter Ended Quarter Ended
September 30, 2023 June 30, 2023 September 30, 2022
Net Investment Income (“NII”) $125,612 $112,779 $99,266
Basic NII per Common Share(1) $0.25 $0.23 $0.22
Interest as % of Total Investment Income 85.7% 89.1% 86.0%
Basic NII Coverage of Distributions to Common Shareholders 139% 128% 122%
Annualized Basic NII Return on Common NAV 10.8% 10.0% 8.8%
Net Income (Loss) Applicable to Common Shareholders $94,011 $(13,950) $(105,199)
Basic Net Income (Loss) per Common Share(2) $0.23 $(0.03) $(0.27)
Distributions to Common Shareholders $73,252 $72,490 $71,072
Distributions per Common Share $0.18 $0.18 $0.18
Since Oct 2017 Basic NII per Common Share(1) $4.89 $4.63 $3.97
Since Oct 2017 Distributions per Common Share $4.32 $4.14 $3.60
Since Oct 2017 Basic NII Less Distributions per Common Share $0.57 $0.49 $0.37
Since Oct 2017 Basic NII Coverage of Distributions to Common Shareholders 113% 112% 110%
Net Asset Value (“NAV”) to Common Shareholders $3,780,866 $3,732,665 $3,964,422
NAV per Common Share $9.25 $9.24 $10.01
Balance Sheet Cash + Undrawn Revolving Credit Facility Commitments $1,108,386 $993,443 $877,548
Net of Cash Debt to Equity Ratio(3) 46.5% 48.8% 53.5%
Net of Cash Asset Coverage of Debt Ratio(3) 314% 304% 286%
Unsecured Debt + Preferred Equity as % of Total Debt + Preferred Equity 77.0% 74.8% 77.9%
Unsecured or Non-Recourse Debt as % of Total Debt 100.0% 100.0% 100.0%
(1) Basic NII is calculated by dividing NII, less preferred dividends, by the weighted average number of common shares outstanding.
(2) Basic Net Income (Loss) is calculated by dividing Net Income (Loss) by the weighted average number of common shares outstanding.
(3) Including our preferred stock as equity.
CASH COMMON SHAREHOLDER DISTRIBUTION DECLARATION
Prospect is declaring distributions to common shareholders as follows:
Monthly Cash Common Shareholder Distribution Record Date Payment Date Amount ($ per share)
November 2023 11/28/2023 12/19/2023 $0.0600
December 2023 12/27/2023 1/18/2024 $0.0600
January 2024 1/29/2024 2/20/2024 $0.0600
These monthly cash distributions are the 75th, 76th, and 77th consecutive $0.06 per share distributions to common shareholders. Prospect's objective is to maintain or increase such distributions per common share over time.
Prospect expects to declare February 2024, March 2024, and April 2024 distributions to common shareholders in February 2024.
Based on the declarations above, Prospect’s closing stock price of $5.35 at November 7, 2023 delivers to our common shareholders an annualized distribution yield of 13.5% and an annualized basic NII yield of 18.7%, representing 139% basic NII coverage of common distributions.
Taking into account past distributions and our current share count for declared distributions, since inception through our January 2024 declared distribution, Prospect will have distributed $20.58 per share to original common shareholders, representing 2.2 times September 2023 common NAV per share, aggregating approximately $4.10 billion in cumulative distributions to all common shareholders.
Since inception in 2004, Prospect has invested $20.4 billion across 419 investments, exiting 283 of these investments.
Since October 2017, our NII per common share has aggregated $4.89 while our common shareholder and preferred shareholder distributions per common share have aggregated $4.32, with our NII exceeding common and preferred distributions during this period by $0.57 per common share and representing 113% coverage.
Drivers focused on enhancing accretive NII per share growth include (1) our $2.05 billion targeted 6.50% perpetual preferred stock offerings, (2) greater utilization of our cost efficient revolving floating rate credit facility, (3) increase of short-term SOFR rates based on Fed tightening to boost asset yields, (4) optimization of portfolio company performance, and (5) increased primary and secondary originations of senior secured debt and selected equity investments targeting attractive risk-adjusted yields and total returns as we deploy dry powder from our underleveraged balance sheet.
Our senior management team and employees own over 27% of all common shares outstanding, over $1.0 billion of our common equity as measured at NAV.
CASH PREFERRED SHAREHOLDER DISTRIBUTION DECLARATION
Prospect is declaring monthly distributions to 5.50% preferred shareholders at an annual rate of 5.50% of the stated value of $25.00 per share, from the date of issuance or, if later, from the most recent dividend payment date (the first business day of the month, with no additional dividend accruing in January as a result), as follows:
Monthly Cash 5.50% Preferred Shareholder Distribution Record Date Payment Date Monthly Amount ($ per share), before pro ration for partial periods
December 2023 12/20/2023 1/2/2024 $0.114583
January 2024 1/17/2024 2/1/2024 $0.114583
February 2024 2/21/2024 3/1/2024 $0.114583
Prospect is declaring monthly distributions to 6.50% preferred shareholders at an annual rate of 6.50% of the stated value of $25.00 per share, from the date of issuance or, if later, from the most recent dividend payment date (the first business day of the month, with no additional dividend accruing in January as a result), as follows:
Monthly Cash 6.50% Preferred Shareholder Distribution Record Date Payment Date Monthly Amount ($ per share), before pro ration for partial periods
December 2023 12/20/2023 1/2/2024 $0.135417
January 2024 1/17/2024 2/1/2024 $0.135417
February 2024 2/21/2024 3/1/2024 $0.135417
Prospect is declaring our quarterly distribution to Series A preferred shareholders at an annual rate of 5.35% of the stated value of $25.00 per share, from the date of issuance or, if later, from the most recent dividend payment date, as follows:
Quarterly Cash 5.35% Preferred Shareholder Distribution Record Date Payment Date Amount ($ per share)
November 2023 - January 2024 1/17/2024 2/1/2024 $0.334375
PORTFOLIO UPDATE AND INVESTMENT ACTIVITY
All amounts in $000’s except
per unit amounts
As of As of As of
September 30, 2023 June 30, 2023 September 30, 2022
Total Investments (at fair value) $7,736,817 $7,724,931 $7,582,665
Number of Portfolio Companies 128 130 128
First Lien Debt 57.3% 56.5% 51.8%
Second Lien Debt 15.9% 16.4% 19.0%
Subordinated Structured Notes 8.1% 8.6% 9.2%
Unsecured Debt 0.1% 0.1% 0.1%
Equity Investments 18.6% 18.4% 19.9%
Mix of Investments with Underlying Collateral Security 81.3% 81.5% 80.0%
Annualized Current Yield – All Investments 10.3% 10.7% 9.9%
Annualized Current Yield – Performing Interest Bearing Investments 12.7% 13.3% 12.4%
Top Industry Concentration(1) 18.2% 18.6% 18.6%
Retail Industry Concentration(1) 0.3% 0.3% 0.4%
Energy Industry Concentration(1) 1.6% 1.6% 1.6%
Hotels, Restaurants & Leisure Concentration(1) 0.3% 0.3% 0.3%
Non-Accrual Loans as % of Total Assets (2) 0.2% 1.1% 0.3%
Middle-Market Loan Portfolio Company Weighted Average EBITDA(3) $111,026 $113,071 $114,238
Middle-Market Loan Portfolio Company Weighted Average Net Leverage Ratio(3) 5.3x 5.2x 5.3x
(1) Excluding our underlying industry-diversified structured credit portfolio.
(2) Calculated at fair value.
(3) For additional disclosure see “Middle-Market Loan Portfolio Company Weighted Average EBITDA and Net Leverage” at the end of this release.
During the December 2023 (to date), September 2023, and June 2023 quarters, investment originations and repayments were as follows:
All amounts in $000’s
Quarter Ended Quarter Ended Quarter Ended
December 31, 2023 (to date) September 30, 2023 June 30, 2023
Total Originations $57,160 $131,074 $372,236
Real Estate 53.5% 48.5% 18.1%
Structured Notes 24.5% —% 2.7%
Middle-Market Lending 22.0% 40.6% 69.0%
Middle-Market Lending / Buyout —% 10.9% 10.2%
Total Repayments and Sales $1,723 $93,646 $121,745
Originations, Net of Repayments and Sales $55,437 $37,428 $250,491
For additional disclosure see “Primary Origination Strategies” at the end of this release.
We have invested in subordinated structured notes benefiting from individual standalone financings non-recourse to Prospect, with our risk limited in each case to our net investment. At September 30, 2023 and June 30, 2023, our subordinated structured note portfolio at fair value consisted of the following:
All amounts in $000’s except
per unit amounts
As of As of
September 30, 2023 June 30, 2023
Total Subordinated Structured Notes $626,746 $665,002
Subordinated Structured Notes as % of Portfolio 8.1% 8.6%
# of Investments(2) 33 35
TTM Average Cash Yield(1)(2) 17.5% 16.1
Annualized GAAP Yield on Fair Value(1)(2) 10.7% 12.8
Cumulative Cash Distributions on Current Portfolio $1,422,537 $1,460,824
% of Original Investment 116.2% 112.7%
# of Underlying Collateral Loans 1,593 1,613
(1) Calculation based on fair value.
(2) Excludes investments being redeemed.
To date we have exited 15 subordinated structured notes with an expected pooled average realized gross IRR of 12.0% and cash on cash multiple of 1.3 times.
CAPITAL AND LIQUIDITY
Our multi-year, long-term laddered and diversified historical funding profile has included a $1.95 billion revolving credit facility (with 53 lenders, an increase of 11 lenders including our prior September 2022 extension and related upsizing), program notes, institutional bonds, convertible bonds, listed preferred stock, and program preferred stock. We have retired multiple upcoming maturities and, as of today, we have $81.24M of debt maturing during the calendar year 2024, which we intend to repay at maturity using credit facility and preferred stock proceeds. The combined amount of our balance sheet cash and undrawn revolving credit facility commitments is currently approximately $968 million.
On September 15, 2022, we completed an amendment and upsizing of our existing revolving credit facility (the “Facility”) for Prospect Capital Funding, extending the term 1.5 years. The Facility includes a revolving period that extends through September 15, 2026, followed by an additional one-year amortization period. Pricing for amounts drawn under the Facility is one-month SOFR plus 2.05%.
Our total unfunded eligible commitments to portfolio companies totals approximately $27 million, 0.3% of our total assets as of September 30, 2023.
As of As of
All amounts in $000’s September 30, 2023 June 30, 2023
Net of Cash Debt to Equity Ratio(1) 46.5% 48.8%
% of Interest-Bearing Assets at Floating Rates 83.4% 84.7%
% of Fixed Rate Debt & Preferred Equity 77.0% 74.8%
Balance Sheet Cash + Undrawn Revolving Credit Facility Commitments $1,108,386 $993,443
Unencumbered Assets $4,807,645 $4,757,653
% of Total Assets 61.2% 60.5%
(1) Including our preferred stock as equity.
The below table summarizes our September 2023 quarter term debt issuance and repurchase/repayment activity:
All amounts in $000’s Principal Coupon Maturity
Debt Issuances
Prospect Capital InterNotes® $3,976 5.75% - 6.50% July 2026 – September 2043
Total Debt Issuances $3,976
Debt Repurchases/Repayments
Prospect Capital InterNotes® $3,247 2.75% - 5.50% February 2026 – March 2052
Total Debt Repurchases/Repayments $3,247
Net Debt Repurchases/Repayments $729
We currently have five separate unsecured debt issuances aggregating over $1.2 billion outstanding, not including our program notes, with laddered maturities extending through October 2028. At September 30, 2023, $358.8 million of program notes were outstanding with laddered maturities through March 2052.
At September 30, 2023, our weighted average cost of unsecured debt financing was 4.08%, an increase of 0.01% from June 30, 2023, and a decrease of 0.25% from September 30, 2022.
On August 3, 2020 and October 3, 2020, we launched our $1.75 billion 5.50% perpetual preferred stock offering programs. On October 7, 2022, we amended our existing $1.75 billion in perpetual preferred stock offering programs to offer new 6.50% series of shares. On February 10, 2023, we upsized our existing $1.75 billion total offerings to $2.05 billion. Prospect expects to use the net proceeds from the offering programs to maintain and enhance balance sheet liquidity, including repaying our credit facility and purchasing high quality short-term debt instruments, and to make long-term investments in accordance with our investment objective. The preferred stock provides Prospect with a diversified source of accretive fixed-rate capital without creating maturity risk due to the perpetual term. To date we have issued over $1.5 billion of our 6.50% and 5.50% perpetual preferred stock programs (including $80 million in the September 2023 quarter and, to date, $32 million in the current December 2023 quarter).
On July 19, 2021, we closed a $150 million listed 5.35% perpetual preferred stock offering. Prospect used the net proceeds from the offering to maintain and enhance balance sheet liquidity, including repaying our credit facility and redeeming higher cost program notes.
In connection with our 5.50% and 6.50% perpetual preferred stock offering programs we have adopted and amended a Preferred Stock Dividend Reinvestment Plan, pursuant to which holders of the preferred stock will have dividends on their preferred stock automatically reinvested in additional shares of such preferred stock at a 5% discount to the stated value per share of $25.00, if they elect.
We currently have over $1.6 billion in preferred stock outstanding.
Prospect holds recently reaffirmed investment grade company ratings, all with a stable outlook, from Standard & Poor’s (BBB-), Moody’s (Baa3), Kroll (BBB-), Egan-Jones (BBB), and DBRS (BBB (low)). Maintaining our investment grade ratings with prudent asset, liability, and risk management is an important objective for Prospect.
DIVIDEND REINVESTMENT PLAN
We have adopted a dividend reinvestment plan (also known as our “DRIP”) that provides for reinvestment of our distributions on behalf of our shareholders, unless a shareholder elects to receive cash. On April 17, 2020, our board of directors approved amendments to the Company’s DRIP, effective May 21, 2020. These amendments principally provide for the number of newly-issued shares pursuant to the DRIP to be determined by dividing (i) the total dollar amount of the distribution payable by (ii) 95% of the closing market price per share of our stock on the valuation date of the distribution (providing a 5% discount to the market price of our common stock), a benefit to shareholders who participate.
HOW TO PARTICIPATE IN OUR DIVIDEND REINVESTMENT PLAN
Shares held with a broker or financial institution
Many shareholders have been automatically “opted out” of our DRIP by their brokers. Even if you have elected to automatically reinvest your PSEC stock with your broker, your broker may have “opted out” of our DRIP (which utilizes DTC’s dividend reinvestment service), and you may therefore not be receiving the 5% pricing discount. Shareholders interested in participating in our DRIP to receive the 5% discount should contact their brokers to make sure each such DRIP participation election has been made through DTC. In making such DRIP election, each shareholder should specify to one’s broker the desire to participate in the "Prospect Capital Corporation DRIP through DTC" that issues shares based on 95% of the market price (a 5% discount to the market price) and not the broker's own "synthetic DRIP” plan (if any) that offers no such discount. Each shareholder should not assume one’s broker will automatically place such shareholder in our DRIP through DTC. Each shareholder will need to make this election proactively with one’s broker or risk not receiving the 5% discount. Each shareholder may also consult with a representative of such shareholder’s broker to request that the number of shares the shareholder wishes to enroll in our DRIP be re-registered by the broker in the shareholder’s own name as record owner in order to participate directly in our DRIP.
Shares registered directly with our transfer agent
If a shareholder holds shares registered in the shareholder’s own name with our transfer agent (less than 0.1% of our shareholders hold shares this way) and wants to make a change to how the shareholder receives dividends, please contact our plan administrator, American Stock Transfer and Trust Company LLC by calling (888) 888-0313 or by mailing American Stock Transfer and Trust Company LLC, 6201 15th Avenue, Brooklyn, New York 11219.
EARNINGS CONFERENCE CALL
Prospect will host an earnings call on Thursday November 9, 2023 at 10:30 a.m. Eastern Time. Dial 888-338-7333. For a replay prior to December 9, 2023 visit www.prospectstreet.com or call 877-344-7529 with passcode 3766732.
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(in thousands, except share and per share data)
September 30, 2023
June 30, 2023
(Unaudited)
Assets
Investments at fair value:
Control investments (amortized cost of $3,060,201 and $2,988,496, respectively) $ 3,625,608 $ 3,571,697
Affiliate investments (amortized cost of $10,162 and $8,855, respectively) 12,541 10,397
Non-control/non-affiliate investments (amortized cost of $4,543,490 and $4,803,245, respectively) 4,098,668 4,142,837
Total investments at fair value (amortized cost of $7,613,853 and $7,800,596, respectively) 7,736,817 7,724,931
Cash and Cash Equivalents (restricted cash of $4,575 and $5,074, respectively) 68,907 95,646
Receivables for:
Interest, net 30,796 22,701
Other 1,057 1,051
Deferred financing costs on Revolving Credit Facility 14,906 15,569
Due from broker 435 617
Prepaid expenses 893 1,149
Due from Affiliate 17 2
Total Assets 7,853,828 7,861,666
Liabilities
Revolving Credit Facility 915,021 1,014,703
Public Notes (less unamortized discount and debt issuance costs of $15,929 and $17,103, respectively) 1,065,311 1,064,137
Prospect Capital InterNotes® (less unamortized debt issuance costs of $6,510 and $6,688, respectively) 352,324 351,417
Convertible Notes (less unamortized discount and debt issuance costs of $1,350 and $1,577, respectively) 154,818 154,591
Due to Prospect Capital Management 64,906 61,651
Dividends payable 24,798 31,033
Interest payable 20,303 22,684
Accrued expenses 3,590 4,926
Due to Prospect Administration 1,521 4,066
Due to broker 16 94
Due to Affiliate — 161
Other liabilities 107 1,524
Total Liabilities 2,602,715 2,710,987
Commitments and Contingencies
Preferred Stock, par value $0.001 per share (447,900,000 and 447,900,000 shares of preferred stock authorized, with 72,000,000 and 72,000,000 as Series A1, 72,000,000 and 72,000,000 as Series M1, 72,000,000 and 72,000,000 as Series M2, 20,000,000 and 20,000,000 as Series AA1, 20,000,000 and 20,000,000 as Series MM1, 1,000,000 and 1,000,000 as Series A2, 6,900,000 and 6,900,000 as Series A, 72,000,000 and 72,000,000 as Series A3, 72,000,000 and 72,000,000 as Series M3, 20,000,000 and 20,000,000 as Series AA2, and 20,000,000 and 20,000,000 as Series MM2, each as of September 30, 2023 and June 30, 2023; 30,780,669 and 30,965,138 Series A1 shares issued and outstanding; 3,155,352 and 3,681,591 Series M1 shares issued and outstanding; 0 and 0 Series M2 shares issued and outstanding; 0 and 0 Series AA1 shares issued and outstanding; 0 and 0 Series MM1 shares issued and outstanding; 164,000 and 164,000 Series A2 shares issued and outstanding; 5,900,345 and 5,962,654 Series A shares issued and outstanding; 21,611,105 and 18,829,837 Series A3 shares issued and outstanding; 2,882,254 and 2,498,788 Series M3 shares issued and outstanding; 0 and 0 Series AA2 shares issued and outstanding; and 0 and 0 Series MM2 shares issued and outstanding as of September 30, 2023 and June 30, 2023, respectively) at carrying value plus cumulative accrued and unpaid dividends. 1,470,247 1,418,014
Net Assets Applicable to Common Shares $ 3,780,866 $ 3,732,665
Components of Net Assets Applicable to Common Shares and Net Assets, respectively
Common stock, par value $0.001 per share (1,552,100,000 and 1,552,100,000 common shares authorized; 408,618,704 and 404,033,549 issued and outstanding, respectively) 409 404
Paid-in capital in excess of par 4,151,023 4,123,586
Total distributable (loss) earnings (370,566 ) (391,325 )
Net Assets Applicable to Common Shares $ 3,780,866 $ 3,732,665
Net Asset Value Per Common Share $ 9.25 $ 9.24
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(Unaudited)
Three Months Ended September 30,
2023 2022
Investment Income
Interest income:
Control investments $ 73,243 $ 62,263
Affiliate investments — 7,461
Non-control/non-affiliate investments 112,517 81,698
Structured credit securities 16,687 22,896
Total interest income 202,447 174,318
Dividend income:
Control investments 227 1,187
Affiliate investments 1,307 1,374
Non-control/non-affiliate investments 1,525 340
Total dividend income 3,059 2,901
Other income:
Control investments 29,745 20,665
Affiliate investments — 133
Non-control/non-affiliate investments 994 4,657
Total other income 30,739 25,455
Total Investment Income 236,245 202,674
Operating Expenses
Base management fee 39,289 38,314
Income incentive fee 25,617 21,626
Interest and credit facility expenses 40,593 33,870
Allocation of overhead from Prospect Administration 2,113 3,099
Audit, compliance and tax related fees 1,017 2,301
Directors’ fees 135 131
Other general and administrative expenses 1,869 4,067
Total Operating Expenses 110,633 103,408
Net Investment Income 125,612 99,266
Net Realized and Net Change in Unrealized (Losses) Gains from Investments
Net realized losses
Control investments (147 ) (1,093 )
Non-control/non-affiliate investments (207,342 ) (22,084 )
Net realized losses (207,489 ) (23,177 )
Net change in unrealized gains (losses)
Control investments (17,794 ) (47,289 )
Affiliate investments 837 (70,786 )
Non-control/non-affiliate investments 215,586 (50,425 )
Net change in unrealized gains (losses) 198,629 (168,500 )
Net Realized and Net Change in Unrealized Gains (Losses) from Investments (8,860 ) (191,677 )
Net realized losses on extinguishment of debt (91 ) (28 )
Net Increase (Decrease) in Net Assets Resulting from Operations 116,661 (92,439 )
Preferred stock dividend (23,151 ) (12,760 )
Gain on Repurchase of Preferred Stock 501 —
Net Increase (Decrease) in Net Assets Resulting from Operations applicable to Common Stockholders $ 94,011 $ (105,199 )
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
ROLLFORWARD OF NET ASSET VALUE PER COMMON SHARE
(in actual dollars)
Three Months Ended September 30,
2023 2022
Per Share Data
Net asset value per common share at beginning of period $ 9.24 $ 10.48
Net investment income(1) 0.31 0.25
Net realized and change in unrealized gains (losses)(1) (0.02 ) (0.48 )
Net increase (decrease) from operations 0.29 (0.23 )
Distributions of net investment income to preferred stockholders (0.06 ) (3 ) (0.03 )
Distributions of capital gains to preferred stockholders — (3 ) —
Net increase (decrease) from operations applicable to common stockholders(4) 0.23 (0.26 )
Distributions of net investment income to common stockholders (0.18 ) (3 ) (0.16 )
Distributions of capital gains to common stockholders — (3 ) (0.02 )
Common stock transactions(2) (0.04 ) (0.03 )
Net asset value per common share at end of period $ 9.25 $ 10.01
(1) Per share data amount is based on the basic weighted average number of common shares outstanding for the year/period presented (except for dividends to stockholders which is based on actual rate per share). Realized gains (losses) is inclusive of net realized losses (gains) on investments, realized losses from extinguishment of debt and realized gains from the repurchase of preferred stock.
(2) Common stock transactions include the effect of our issuance of common stock in public offerings (net of underwriting and offering costs), shares issued in connection with our common stock dividend reinvestment plan, common shares issued to acquire investments and common shares repurchased below net asset value pursuant to our Repurchase Program, and common shares issued pursuant to the Holder Optional Conversion of our 5.50% and 6.50% Preferred Stock.
(3) Tax character of distributions is not yet finalized for the respective fiscal period.
(4) Diluted net increase from operations applicable to common stockholders was $0.18 for the three months ended September 30, 2023. Diluted net decrease from operations applicable to common stockholders was $0.27 for the three months ended September 30, 2022.
MIDDLE-MARKET LOAN PORTFOLIO COMPANY WEIGHTED AVERAGE EBITDA AND NET LEVERAGE
Middle-Market Loan Portfolio Company Weighted Average Net Leverage (“Middle-Market Portfolio Net Leverage”) and Middle-Market Loan Portfolio Company Weighted Average EBITDA (“Middle-Market Portfolio EBITDA”) provide clarity into the underlying capital structure of PSEC’s middle-market loan portfolio investments and the likelihood that such portfolio will make interest payments and repay principal.
Middle-Market Portfolio Net Leverage reflects the net leverage of each of PSEC’s middle-market loan portfolio company debt investments, weighted based on the current fair market value of such debt investments. The net leverage for each middle-market loan portfolio company is calculated based on PSEC’s investment in the capital structure of such portfolio company, with a maximum limit of 10.0x adjusted EBITDA. This calculation excludes debt subordinate to PSEC’s position within the capital structure because PSEC’s exposure to interest payment and principal repayment risk is limited beyond that point. Additionally, subordinated structured notes, rated secured structured notes, real estate investments, investments for which EBITDA is not available, and equity investments, for which principal repayment is not fixed, are also not included in the calculation. The calculation does not exceed 10.0x adjusted EBITDA for any individual investment because 10.0x captures the highest level of risk to PSEC. Middle-Market Portfolio Net Leverage provides PSEC with some guidance as to PSEC’s exposure to the interest payment and principal repayment risk of PSEC’s middle-market loan portfolio. PSEC monitors its Middle-Market Portfolio Net Leverage on a quarterly basis.
Middle-Market Portfolio EBITDA is used by PSEC to supplement Middle-Market Portfolio Net Leverage and generally indicates a portfolio company’s ability to make interest payments and repay principal. Middle-Market Portfolio EBITDA is calculated using the EBITDA of each of PSEC’s middle-market loan portfolio companies, weighted based on the current fair market value of the related investments. The calculation provides PSEC with insight into profitability and scale of the portfolio companies within PSEC's middle-market loan portfolio.
These calculations include addbacks that are typically negotiated and documented in the applicable investment documents, including but not limited to transaction costs, share-based compensation, management fees, foreign currency translation adjustments, and other nonrecurring transaction expenses.
Together, Middle-Market Portfolio Net Leverage and Middle-Market Portfolio EBITDA assist PSEC in assessing the likelihood that PSEC will timely receive interest and principal payments. However, these calculations are not meant to substitute for an analysis of PSEC’s underlying portfolio company debt investments, but to supplement such analysis.
PRIMARY ORIGINATION STRATEGIES
Lending to Companies - We make directly-originated, agented loans to companies, including companies which are controlled by private equity sponsors and companies that are not controlled by private equity sponsors (such as companies that are controlled by the management team, the founder, a family or public shareholders). This debt can take the form of first lien, second lien, unitranche or unsecured loans. These loans typically have equity subordinate to our loan position. We may also purchase selected equity co-investments in such companies. In addition to directly-originated, agented loans, we also invest in senior and secured loans, syndicated loans and high yield bonds that have been sold to a club or syndicate of buyers, both in the primary and secondary markets. These investments are often purchased with a long term, buy-and-hold outlook, and we often look to provide significant input to the transaction by providing anchoring orders.
Lending to Companies and Purchasing Controlling Equity Positions in Such Companies - This strategy involves purchasing senior and secured yield-producing debt and controlling equity positions in middle-market companies across various industries. We believe this strategy provides enhanced certainty of closing to sellers, and the opportunity for management to continue in their current roles. These investments are often structured in tax-efficient partnerships, enhancing returns.
Purchasing Controlling Equity Positions and Lending to Real Estate Companies - We purchase debt and controlling equity positions in tax-efficient real estate investment trusts (“REIT” or “REITs”). The real estate investments of National Property REIT Corp. (“NPRC”) are in various classes of developed and occupied real estate properties that generate current yields, including multi-family properties, student housing, and senior living. NPRC seeks to identify properties that have historically attractive occupancy rates and recurring cash flow generation. NPRC generally co-invests with established and experienced property management teams that manage such properties after acquisition.
Investing in Structured Credit - We make investments in structured credit, often taking a significant position in subordinated structured notes (equity) and rated secured structured notes (debt). The underlying portfolio of each structured credit investment is diversified across approximately 100 to 200 broadly syndicated loans and does not have direct exposure to real estate, mortgages, or consumer-based credit assets. The structured credit portfolios in which we invest are managed by established collateral management teams with many years of experience in the industry.
ABOUT PROSPECT CAPITAL CORPORATION
Prospect Capital Corporation (www.prospectstreet.com) is a business development company that focuses on lending to and investing in private businesses. Our investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.
We have elected to be treated as a business development company under the Investment Company Act of 1940 (“1940 Act”). We are required to comply with regulatory requirements under the 1940 Act as well as applicable NASDAQ, federal, and state rules and regulations. We have elected to be treated as a regulated investment company under the Internal Revenue Code of 1986.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made. We undertake no obligation to update any such statement now or in the future.
For additional information, contact:
Grier Eliasek, President and Chief Operating Officer
grier@prospectcap.com
Telephone (212) 448-0702
Primary Logo
OTC Updates
🚨 $EMGE
💰0.0007
Pink Current, AS: 7.5B, OS: 426M, US: 292M
Business Description Updated:
🔴 Emergent curates, develops and sells products in the Regenerative Health Space. Its products comprise of ingestibles as well as topicals for the whole family. The company distributes its products online and through Content Based Shopping using Influencers to position products in their produced content throughout the United States and Internationally. Its subsidiaries; PharmaZu, is a pure play, e-commerce products and service provider focused on the Pet Community, Pet Pharmacy and Pet Wellness using Influencers and their content, including the pet pharmacy, vet telehealth and pet wellness businesses; Regen BioWellness, is a distributor of various products in the plant-based and regenerative medical fields. Evolutionary Biologics, is a new kind of biologics company founded for a clear purpose: bring cutting edge regenerative products to the medical community. Emergent does not claim any of its products are approved by the FDA to diagnose, treat, cure or prevent any disease. For more information, please visit Emergent's Website and Social Media on Twitter. Emergent was founded in 2006 and is now headquartered in New York, NY.
🟢 Emergent has 12 nutritional and dietary products through an exclusive licensing agreement with Cappello’s, Inc., a firm owned by our former President, Dr. John Cappello. These products are based upon the research of Dr. Cappello. These products are, and in the future will be, identified by us based upon suggestions from our distributors, customers and from product and market research we intend to conduct on an ongoing basis. None of these products has been confirmed in any respect by the U.S. Food and Drug Administration or any other governmental agency and may not produce the results intended. In August 2022, we acquired the business of Regen Biowellness, Inc., a distributor of various products in the plant-based and regenerative medical fields. Pursuant to this transaction, we became controlling shareholder of Cannagistics, Inc., a publicly traded company under the symbol “CNGT.” Also in August 2022, we acquired Evolutionary Biologics, Inc., a new kind of biologics company founded for a clear purpose: to bring cutting-edge regenerative products to the medical community. Established in September 2021, Evolutionary is a cutting-edge biotech company with a sophisticated branding and marketing suite. Evolutionary’s products are manufactured at a cGMP-compliant FDA Certified lab using clean rooms and ISO3 and ISO7 technology and produced by highly trained scientists and engineers. As a result, we have total control over all the steps involved in our product development process
Officer(s) Removed:
🔴Marvin Segel, Chief Marketing Officer
Product Services Description Updated:
🔴 Patented and patent pending nutritional supplements VitaStim NeuStem MultiStem Anxium VERAL
🟢 In addition to the products previously offered, Evolutionary offers products that are manufactured at a cGMP-compliant FDA Certified lab using clean rooms and ISO3 and ISO7 technology and produced by highly trained scientists and engineers. Evolutionary’s main products are: • EvoGro - A multi-billion cell count exosomal suspension produced from Wharton’s Jelly (WJ) derived Mesynchemal Stem Cells (MSCs). This product is uniquely positioned for clinical utilization in hair restoration applications. • ExoElixir - A multi-billion cell count dermal fibroblast exosomes suspension enhanced with a proprietary blend of seven (7) natural ingredients that support the repair and overall health of skin tissue. • EvoJel - An ultra-pure and highly concentrated preparation of Wharton’s Jelly (WJ) derived Mesenchymal Stem Cells (MSCs). • EvoHybrid - The only current commercially available combination solution of Wharton’s Jelly (WJ) derived Mesenchymal Stem Cells (MSCs) and amniotic fluid. This is a filtered product, which allows for the safe administration via intravenous (IV) delivery. • EvoMSC - A multi-billion cell count suspension of Wharton’s
t.me/otcupdates
/60453
Nov 8 at 14:44
NewtekOne, Inc. Reports Third Quarter 2023 Financial Results
Source: GlobeNewswire Inc.
NewtekOne, Inc. (Nasdaq: NEWT), announced today its financial and operating results for the three and nine months ended September 30, 2023.
This is NewtekOne's third quarter reporting, and second full quarter reporting, as a financial holding company following the Company's completion of its acquisition of National Bank of New York City ("NBNYC") (renamed Newtek Bank, N.A.) and the withdrawal of its BDC election, on January 6, 2023. NewtekOne now consolidates the results of its former portfolio companies (now subsidiaries) and no longer uses investment company accounting. As a result, some prior-period and year-over-year comparisons are difficult, and we believe it is important to analyze many of our financial metrics on linked-quarter basis. Additionally, when analyzing NewtekOne, we also believe it is important to consider the Company's time-tested, differentiated business model which has provided multiple streams of income from its various businesses, as well as its operating structure which does not use branches, traditional bankers, brokers or business development officers to source business opportunities and instead relies upon the NewTracker(R) system which provides approximately 1,000 unique business referrals each day.
NewtekOne Third Quarter 2023 Financial Highlights
Net income was $10.0 million, or $0.38 per basic common share, for the three months ended September 30, 2023, a 46.2% increase on a per share basis over net income of $6.9 million, or $0.26 per basic common share, for the three months ended June 30, 2023.
Net interest income was $8.1 million for the three months ended September 30, 2023; an increase of 42.1% over $5.7 million for the three months ended June 30, 2023.
Total assets were $1.4 billion at September 30, 2023, unchanged compared to $1.4 billion at June 30, 2023.
Total borrowings were $648.7 million at September 30, 2023; a decrease of 7.0% from $697.4 million million at June 30, 2023.
Loans held for investment were $773.9 million at September 30, 2023; an increase of 5.9% over $730.7 million at June 30, 2023.
Cash and cash equivalents were $223.7 million, including $68.7 million of restricted cash, at September 30, 2023; a decrease of 12.7% from to $256.3 million, including $66.7 million of restricted cash, at June 30, 2023.
Net interest margin2 was 2.71% for the three months ended September 30, 2023; an increase of 29.7% over 2.09% for the three months ended June 30, 2023.
Return on average tangible common equity ("ROTCE") of 22.6% for the three months ended September 30, 2023; an increase of 45.8% over 15.5% for the three months ended June 30, 2023.
Return on average assets ("ROAA")1,2 of 2.8% for the three months ended September 30, 2023; an increase of 40.0% over 2.0% for the three months ended June 30, 2023.
Efficiency ratio2 of 67.8% for the three months ended September 30, 2023; a decrease of 12.1% compared to 77.1% for the three months ended June 30, 2023.
Total risk-based capital ratio2 was 17.7% at September 30, 2023; an increase of 17.2% over 15.1% at June 30, 2023.
Tier-1 leverage ratio2 was 14.6% at September 30, 2023; an increase of 39.0% over 10.5% at June 30, 2023
On October 20, 2023, the Company paid its third quarterly cash dividend as a financial holding company of $0.18 per share to shareholders of record as of October 10, 2023.
The Company is forecasting full year 2023 earnings per share in a range of $1.60 to $1.80, and has met or exceeded its previously issued 2023 quarterly earnings forecasts for the first nine months of 2023.
The Company is currently forecasting full year 2024 earnings per share in a range of $1.80 to $2.00.
NewtekOne Financial Highlights Nine Months Ended September 30, 2023
Net income was $28.5 million, or $1.10 per basic common share, for the nine months ended September 30, 2023.
Net interest income was $18.3 million for the nine months ended September 30, 2023.
Newtek Bank, N.A.
Total deposits were $432.6 million at September 30, 2023, which represents a 217.4% increase in deposits, compared to $141.6 million in deposits at NBNYC at December 31, 2022.
Insured deposits represented approximately 83.7% of total deposits at September 30, 2023.
Net interest margin2 was 3.49% for the three months ended September 30, 2023; an increase of 9.4% over 3.19% for the three months ended June 30, 2023.
ROTCE1,2 of 39.8% for the three months ended September 30, 2023; an increase of 24.0% over 32.1% for the three months ended June 30, 2023.
ROAA1,2 of 5.3% for the three months ended September 30, 2023; an increase of 8.2% over 4.9% for the three months ended June 30, 2023.
Efficiency ratio1,2 of 49.1% for the three months ended September 30, 2023; a decrease of 16.4% compared to 58.7% for the three months ended June 30, 2023.
Total risk-based capital ratio2 was 25.0% at September 30, 2023, a decrease of 15.0% from 29.4% at June 30, 2023.
Tier-1 leverage ratio2 was 14.9% at September 30, 2023; a decrease of 11.8% from 16.9% at June 30, 2023.
Lending Highlights
In April 2023, the Company began funding SBA 7(a) loans out of Newtek Bank with Preferred Lender Program (PLP) status.
Total SBA 7(a) loan fundings of $209.9 million for the three months ended September 30, 2023; an increase of 7.1% over $195.9 million of SBA 7(a) loans funded for the three months ended June 30, 2023.
Total SBA 7(a) loan fundings of $554.3 million for the nine months ended September 30, 2023.
The Company forecasts $830 million in total SBA 7(a) loan fundings for 2023, which would represent a 7.0% increase over 2022.
Newtek Bank closed $17.7 million of SBA 504 loans for the three months ended September 30, 2023; an increase of 7.9% over $16.4 million SBA 504 loans closed for the three months ended June 30, 2023.
Total SBA 504 loan closings of $82.4 million for the nine months ended September 30, 2023.
Barry Sloane, President, Chairman and CEO commented, "After acquiring National Bank of New York City on January 6, 2023, we were able to fully transition our lending operations to the newly named Newtek Bank, National Association, in the second quarter of 2023, and have now demonstrated, through two full quarters of performance, our ability to perform and deliver strong results to our shareholders. Our unique and forward-thinking business model was able to produce strong results for Newtek Bank, as well as positive performance metrics at NewtekOne, the financial holding company.”
Mr. Sloane continued, “Newtek Bank had a net interest margin of 3.49%; a 9.4% increase from 3.19% from the prior quarter. In addition, return on average assets was 5.3%; a 8.2% increase from 4.9% in the prior quarter, and return on tangible common equity was 39.8%; a 24.0% increase from 32.1% in the prior quarter. The bank’s efficiency ratio for the third quarter 2023 was 49.1%; a 16.4% decrease compared to 58.7% in the second quarter of 2023. We believe all of these metrics demonstrate that Newtek Bank has an extremely bright future based upon its unique business model and opportunities to grow its well-capitalized balance sheet.”
Further commenting on NewtekOne's performance metrics, Mr. Sloane said, “We also demonstrated attractive returns with growth features in NewteOne's non-banking and banking activities. Net interest margin for the third quarter 2023 was 2.71%; a 29.7% increase from 2.09% in the prior quarter, return on average assets was 2.8%; a 40.0% increase from 2.0% in the prior quarter, and return on tangible common equity was 22.6%; a 45.8% increase from 15.5% in the prior quarter. Furthermore, in the third quarter 2023, NewtekOne demonstrated capital levels that we view as above the norm for bank holding companies for CET1 ratio, total risk-based capital ratio, and Tier 1 leverage ratio at 15.1%, 17.7%, and 14.6%, respectively. We believe these metrics leave us well positioned for continued growth, as they are well in excess of regulatory minimums and we believe are above what is typical for conventional banks and bank holding companies.”
Mr. Sloane further commented, “We also achieved SBA 7(a) loan fundings for the third quarter 2023 of $209.9 million and maintained our level of deposits over the second quarter of 2023 and, as such, we believe Newtek Bank is very well positioned to utilize its excess cash to fund loans in the fourth quarter 2023 and the first quarter 2024. We have clearly communicated that deposit gathering in 2023 was focused on bringing in deposits digitally, primarily through high-yield savings accounts, and that our plan for 2024 will be to bring lower-cost deposits in the commercial demand deposit and commercial money market areas that are more transactional in nature and therefore require additional infrastructure and human talent, which is currently being put in place at Newtek Bank. Important to note, is that our non-banking, reoccurring revenue activities at our Newtek Payments, Newtek Insurance, Newtek Payroll and Newtek Technology vertical businesses performed well, with profits growing over 2022 levels. Our non-bank subsidiary business verticals act as an anchor for our business portal, the Newtek Advantage®, which provides direct access to our Newtek business and financial solutions and is a true differentiator for our clients. At the end of October 2023, we rolled out the Newtek Advantage, unveiling this offering to 5,000 existing NewtekOne clients that are now aware of the multiple ways in which NewtekOne can help independent business owner customers become more successful by reducing their risk, growing their revenue, and reducing expenses by partnering with NewtekOne to process their business. During tomorrow’s conference call, we will address how we have integrated our offerings into our technology to make our offerings frictionless and seamless, so that clients can experience how we can assist them in their business to achieve higher levels of efficiency."
Mr. Sloane concluded, “In the third quarter 2023, we are also proud to illuminate the completion of a public SEC-registered debt offering of $40 million, the continued payment of a quarterly $0.18 per share dividend to shareholders and earnings per share of $0.38 to our common shareholders. We continue to progress quarter by quarter as we operate as a financial holding company, and believe analysts and investors will become more familiar with our unique model that does not rely on branches, traditional bankers, brokers or business development officers. We look forward to addressing the investment community and analyst community on our conference call tomorrow morning.”
Third Quarter 2023 Conference Call and Webcast
A conference call to discuss the third quarter 2023 financial results will be hosted by Barry Sloane, President, Chairman and Chief Executive Officer, M. Scott Price, Chief Financial Officer, and Nicholas Leger, Chief Accounting Officer, tomorrow, Wednesday, November 8, 2023, 8:30 a.m. ET.
Please note, to attend the conference call or webcast, participants should register online at NewtekOne, Inc. Q3 2023 Financial Results Conference Call. To receive a dial-in number, participants are requested to register at a minimum 15 minutes before the start of the call. The corresponding presentation will be available in the ‘Events & Presentations’ section of the Investor Relations portion of NewtekOne's website at NewtekOne, Inc. Q3 2023 Financial Results Conference Call. A replay of the call with the corresponding presentation will be available on NewtekOne's website shortly following the live presentation and will be available for a period of 90 days.
Note Regarding Dividend Payments
Amount and timing of dividends, if any, remain subject to the discretion of the Company's Board of Directors.
NewtekOne®, Your Business Solutions Company®, is a financial holding company, which along with its bank and non-bank consolidated subsidiaries, provides a wide range of business and financial solutions under the Newtek® brand to the small- and medium-sized business (“SMB”) market. Since 1999, NewtekOne has provided state-of-the-art, cost-efficient products and services and efficient business strategies to SMB relationships across all 50 states to help them grow their sales, control their expenses and reduce their risk.
NewtekOne’s and its subsidiaries’ business and financial solutions include: banking (Newtek Bank, N.A.), Business Lending, SBA Lending Solutions, Electronic Payment Processing, Technology Solutions (Cloud Computing, Data Backup, Storage and Retrieval, IT Consulting), eCommerce, Accounts Receivable Financing & Inventory Financing, Insurance Solutions, Web Services, and Payroll and Benefits Solutions.
Newtek®, NewtekOne®, Newtek Bank, National AssociationTM, Your Business Solutions Company®, Newtek Advantage® and One Solution for All Your Business Needs® are registered trademarks of NewtekOne, Inc.
Note Regarding Forward-Looking Statements
Certain statements in this press release are “forward-looking statements” within the meaning of the rules and regulations of the Private Securities Litigation and Reform Act of 1995. Information regarding the Company’s assets under supervision, capital ratios, risk-weighted assets, supplementary leverage ratio and balance sheet data consists of preliminary estimates. These statements and other forward-looking statements herein are based on the current beliefs and expectations of NewtekOne's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. In addition, earnings per share guidance reflects risks, uncertainties and assumptions with respect to facts and circumstances that are beyond our control, in particular concerning interest rates, monetary policy and prevailing economic conditions (including the impacts from a government shutdown ) during the relevant periods, any of which may differ significantly from our assumptions about the applicable period, causing our actual operating results, including our earnings per share, to differ materially from the stated guidance. See “Note Regarding Forward-Looking Statements” and the sections entitled “Risk Factors” in our filings with the Securities and Exchange Commission and available on NewtekOne's website (https://investor.newtekbusinessservices.com/sec-filings), and on the Securities and Exchange Commission’s website (www.sec.gov). Any forward-looking statements made by or on behalf of NewtekOne speak only as to the date they are made, and NewtekOne does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.
SOURCE: NewtekOne, Inc.
Investor Relations & Public Relations
Contact: Jayne Cavuoto
Telephone: (212) 273-8179 / jcavuoto@newtekone.com
ATSG Reports Third Quarter 2023 Results
Source: Business Wire
– Deployed seven newly-converted freighters, including our first two A321-200s, in the quarter
– 2023 Outlook revised to reflect current operating environment
Air Transport Services Group, Inc. (Nasdaq: ATSG), the leading provider of medium wide-body aircraft leasing, contracted air transportation, and related services, today reported consolidated financial results for the third quarter ended September 30, 2023. Those results, as compared with the same quarter in 2022, were as follows:
Third Quarter 2023 Results
Revenues of $523 million, up 1%
GAAP EPS (basic) from Continuing Operations of $0.26, down $0.42
Adjusted EPS* from Continuing Operations of $0.32, versus $0.60
Pretax Earnings from Continuing Operations of $24 million, down from $65 million.
Adjusted Pretax* Earnings of $31 million, down from $67 million
Adjusted EBITDA* of $137 million, down from $163 million
9.4 million shares repurchased since September 2022, including 5.4 million shares in the third quarter
Joe Hete, Chief Executive Officer of ATSG, said, “The third quarter started out on track with our expectations, carrying solid second-quarter momentum from our passenger airline operations into the summer. We leased seven newly converted freighters in July and early August, including five 767-300s and our first two A321-200s. However, both macro and operational pressures throughout the latter part of the quarter materially affected our results. Particularly in September, our passenger airline operations experienced service related issues that drove significant unplanned travel and flight crew costs. In our CAM leasing operations, we realized lower revenues from 767-200 aircraft sales and associated engine power than forecasted during the quarter.”
* Adjusted EPS (Earnings per Share), Adjusted Pretax Earnings, Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) and Adjusted Free Cash Flow, each of which is from Continuing Operations, are non-GAAP financial measures and are defined and reconciled to GAAP measures at the end of this release.
Segment Results
Cargo Aircraft Management (CAM)
Aircraft leasing and related revenues in the third quarter were down 1% compared with the prior year quarter, due to eleven fewer leased 767-200 aircraft and lower power-by-cycle ("PBC") engine revenue associated with 767-200s, partially offset by higher average lease rates, as nine more 767-300s and two initial A321-200s have been deployed since September 2022.
Pre-tax earnings decreased 37% to $23 million versus the prior year quarter. Earnings were impacted by the scheduled return of eleven 767-200s since September 2022, including two in the third quarter this year, as well as reduced PBC revenue from fewer 767-200s in service, and fewer cycles flown by those still in service. Higher aircraft sales in the prior-year period also negatively impacted the segment earnings comparison. Interest expense versus the prior year period increased $5 million, and depreciation was up $2 million due to new deployments replacing mostly depreciated assets.
CAM deployed five Boeing 767-300 and two Airbus A321-200 leased freighters to external customers during the quarter. Eleven leased freighters have been deployed since September 2022, including nine 767-300s and two A321-200s. For the full year 2023, CAM now expects to deploy 16 newly converted leased freighter aircraft, including 12 767-300s and four A321-200s. Six of the 16 are due to be deployed in the fourth quarter.
Twenty aircraft are currently in or awaiting conversion to freighters. That total includes seven A321 aircraft and 13 767-300s. One 767-200 is currently staging for lease. The Company is scheduled to purchase three Airbus A330 feedstock aircraft in the fourth quarter for planned freighter conversion and deployment in 2024.
ACMI Services
Pre-tax earnings were $12 million in the third quarter, down 51% versus the prior-year quarter. The reduction stemmed from unfavorable revenue mix impacts in both cargo and passenger operations, inflation, and service challenges in our passenger operations, which impacted travel and payroll costs in September.
Revenue block hours for ATSG's cargo airlines were down 4% for the third quarter while operating one fewer Boeing 767 freighter compared with the prior-year period. Cargo block hours were affected by fewer longer-haul international routes as compared to the prior-year period.
Passenger block hours, including combi flying, increased 14% versus this quarter last year. Hours flown by the four Boeing 757 combination freighter-passenger aircraft were up significantly due to the resumption of a Pacific route in late 2022, which had been temporarily paused due to the COVID-19 pandemic. Excluding combi hours, passenger block hours increased 9%.
2023 Outlook
In mid-October, certain airlines that lease aircraft from CAM to serve international routes expressed that they are experiencing weaker customer demand, impacting their recent financial performance and outlook. We expect this to disrupt future leasing revenues from those customers.
ATSG expects the conflict in Israel to affect Omni's customer requirements in the near-term. In addition, the Company expects fewer 767-200 aircraft sales and lower engine revenues versus our plan for this year. ATSG's domestic air express operations, in support of the e-commerce networks of DHL and Amazon, are on track with earlier expectations.
ATSG is updating its full-year 2023 guidance as follows:
Current
Prior
Adjusted EBITDA
$560 - $580 million
$610 - $620 million
Adjusted EPS
$1.50 - $1.70
$1.85 - $2.00
For 2023, ATSG is still projecting $785 million in total capex spend, including $545 for growth and $240 million in sustaining capex. However, ATSG now expects to further reduce its 2024 capex plan to $505 million, down $100 million in growth capex from the plan communicated at the September Investor Day event. This reduction takes into account fewer conversions and feedstock purchases due to softening demand. ATSG expects to provide updated 2024 Adjusted EBITDA guidance in February 2024, which we expect will reflect the aforementioned demand concerns and reduced 2024 capex.
Hete concluded, “We've demonstrated our flexibility to pull back on growth capital investments when conditions warrant, and accordingly, we expect meaningful capital expenditure declines in both 2024 and 2025 as we continue to optimize our capital allocation strategy. The reduction in our capex requirements for 2024 will accelerate our realization of positive free cash flow versus the timetable we communicated in September.”
Non-GAAP Financial Measures
This release, including the attached non-GAAP reconciliation tables, contains financial measures that are not calculated and presented in accordance with generally accepted accounting principles in the United States ("non-GAAP financial measures"). Management uses these non-GAAP financial measures to evaluate historical results and project future results. Management believes that these non-GAAP financial measures assist in highlighting operational trends, facilitating period-over-period comparisons, and providing additional clarity about events and trends affecting core operating performance. Disclosing these non-GAAP financial measures provides insight to investors about additional metrics that management uses to evaluate past performance and prospects for future performance. Non-GAAP measures should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP and may be calculated differently by other companies.
The historical non-GAAP financial measures included in this release are reconciled to the most directly comparable financial measure calculated and presented in accordance with GAAP in the non-GAAP Reconciliation tables included later in this release. The Company does not provide a reconciliation of projected Adjusted EBITDA or Adjusted EPS because it is unable to predict with reasonable accuracy the value of certain adjustments. Certain adjustments can be significantly impacted by the re-measurements of financial instruments including stock warrants issued to a customer. The Company’s earnings on a GAAP basis, including its earnings per share on a GAAP basis, and the non-GAAP adjustments for gains and losses resulting from the re-measurement of stock warrants, will depend on the future prices of ATSG stock, interest rates, and other assumptions which are highly uncertain.
Conference Call
ATSG will host an investor conference call on Tuesday, November 7, 2023, at 10 a.m. Eastern Time to review its financial results for the third quarter of 2023, and its outlook for remainder of the year. Live call participants must register via this link that is also available at ATSG’s website, www.atsginc.com under “Investors” and “Presentations.” Once registered, call participants will receive dial-in numbers and a unique Personal Identification Number (PIN) that must be entered to join the live call. Listen-only access to live and replay versions of the call, including slides, will be available via a webcast link at the same ATSG website location. Slides that accompany management’s discussion of its quarterly results also may be downloaded there shortly before the start of the call at 10 a.m.
About ATSG
ATSG is a leading provider of aircraft leasing and air cargo transportation and related services to domestic and foreign air carriers and other companies that outsource their air cargo lift requirements. ATSG, through its leasing and airline subsidiaries, is the world's largest owner and operator of converted Boeing 767 freighter aircraft. Through its principal subsidiaries, including three airlines with separate and distinct U.S. FAA Part 121 Air Carrier certificates, ATSG provides aircraft leasing, air cargo lift, passenger ACMI and charter services, aircraft maintenance services and airport ground services. ATSG's subsidiaries include ABX Air, Inc.; Airborne Global Solutions, Inc.; Airborne Maintenance and Engineering Services, Inc., including its subsidiary, Pemco World Air Services, Inc.; Air Transport International, Inc.; Cargo Aircraft Management, Inc.; and Omni Air International, LLC. For more information, please see www.atsginc.com.
Cautionary Note on Forward-Looking Statements
Except for historical information contained herein, the matters discussed in this release contain forward-looking statements that involve risks and uncertainties. A number of important factors could cause Air Transport Services Group, Inc.'s ("ATSG's") actual results to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to: (i) unplanned changes in the market demand for our assets and services, including the loss of customers or a reduction in the level of services we perform for customers; (ii) our operating airlines' ability to maintain on-time service and control costs; (iii) the cost and timing with respect to which we are able to purchase and modify aircraft to a cargo configuration; (iv) fluctuations in ATSG's traded share price and in interest rates, which may result in mark-to-market charges on certain financial instruments; (v) the number, timing, and scheduled routes of our aircraft deployments to customers; (vi) our ability to remain in compliance with key agreements with customers, lenders and government agencies; (vii) the impact of current supply chain constraints both within and outside the United States, which may be more severe or persist longer than we currently expect; (viii) the impact of a competitive labor market, which could restrict our ability to fill key positions; and (ix) changes in general economic and/or industry-specific conditions, including inflation.. Other factors that could cause ATSG’s actual results to differ materially from those indicated by such forward-looking statements are contained from time to time in ATSG's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 10-K and quarterly reports on Form 10-Q. Readers should carefully review this release and should not place undue reliance on ATSG's forward-looking statements. These forward-looking statements were based on information, plans and estimates as of the date of this release. Except as may be required by applicable law, ATSG undertakes no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.
https://www.otcmarkets.com/filing/pdf?id=17035213&guid=Be5-kWrUh_JpJth
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549
FORM 8-K CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 07, 2023
UHF LOGISTICS GROUP, INC.
(Exact Name of Registrant as Specified in Charter)
001-363598 (Commission File Number)
150 East Palmetto Park Rd, Suite 800, Boca Raton Fl 334323 (Address of Principal Executive Offices)
(561) 465-7580
Telephone Number, Including Area Code)
Nevada
(State or Other Jurisdiction of Incorporation)
84-2099590 (IRS Employer Identification No.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e 4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company [X]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [X]
1/3
Item 1.01. Entry into a Material Definitive Agreement.
General
UHF Logistics Group, Inc is pleased to announce various revenue-based material events inclusive of Letters of Intents, in different phrases of execution, from the Entrex Alternative Carbon Offset Producer Program.
Entrex Alternative Carbon Offset Producer Program is designed in partnership with manufacturers of various products or services which result in tangible reduction of carbon creation through the respective use, typically by the purchaser, of their product or service.
Entrex provides a no-risk, no cost, turn-key solution to these producers which results in carbon offsets providing new revenue opportunities for the producers and/or their clients while producing new revenue streams for Entrex.
Entrex focuses on producer sectors which each represent upwards of an estimated $10,000,000 (Ten Million US Dollars) in annual production of carbon credits.
Insulation, other construction products and CRE energy management systems. We expect by the end of the year to have contracted 10- year revenue opportunities which double our existing projected forestation revenues.
The Entrex Alternative Carbon Offset Producers program was launched mid-year and marketed through FINRA Broker/Dealers who also introduce Entrex Carbon Market Securities to their global institutional clients.
The Entrex Market was launched in 2019 and has created a series of regulatory compliant carbon offset securities inclusive of Production Financing Bonds, Annual Carbon Offset Dividend Equity and CarbonEase which is our compliance-grade carbon offsets produced from carbon offset projects across multiple sectors. The Entrex Carbon Market offers a regulatory compliant trading platform to buy, sell and retire carbon offset securities.
The UHF Logistics Group s Entrex Alternative Carbon Producer Program Agreement
The Entrex Alternative Carbon Producer Program Agreement establishes a 10 year contractual agreement with various carbon offset producers which are each expected to produce $10,000,000 (ten million) of incremental revenue which is split, pursuant to contract terms, after the return of all production costs to Entrex (et al).
The intent of the program is to establish new and distinctive carbon offset product from producers to support the demand of quality compliance grade offsets from entities that have alliance with buyers with aligned sectors.
UHF Logistics Group, Inc has a series of producers are in various stages of executing Letters of Intent or the Entrex Alternative Carbon Producer Program Agreement which are expected to produce a series of unique revenue streams in 2024 and for the future 10 year contract terms.
Item 7.01. Regulation FD Disclosure.
On November 7, 2023, the Company issued a press release announcing the foregoing. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. The information furnished under this Item 7.01, including the exhibit related thereto, sh
be deemed incorporated by reference in any disclosure document of the Company, except as shall be expressly set forth by specific reference in such document.
99.1 Press release.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized. Dated: November 7, 2023
SIGNATURE
UHF LOGISTICS GROUP, INC
By: /s/ Stephen H. Watkins Name: Stephen H. Watkins Title: Chief Executive Officer
OTC Updates
🚨 $ARAT
💰0.8500
Pink Current, AS: 950M, OS: 123M, US: 2.4M
Business Description Updated:
🔴 In Q1 of FY2022/2023 the Company decided to pursue business opportunities in the TechFin, Blockchain, Digital Asset Management, and Blockchain based Software Solutions sectors. This will be further discussed in upcoming reports.
🟢 FY2023/2024 the Company continued its acquisitions of TechFin, Blockchain, Digital Asset Management, and Blockchain-based Software Solutions companies. Arax continues to pursue business opportunities in these sectors. This will be further discussed in upcoming reports.
Phone Updated:
🔴 (564) 234-7009
🟢 +1 (564) 234-7009
Director(s) Added:
🟢Ockert Loubser, Director
🟢Christopher D. Strachan, Director
🟢Rastislav Vasicka, Director
Held at DTC Shares Updated:
🔴 1,078,500 (2023-10-16)
🟢 1,161,420 (2023-10-30)
Difference: +7.7% (+82K)
Outstanding Shares Updated:
🔴 123,439,666 (2023-10-16)
🟢 123,818,980 (2023-10-30)
Difference: +0.3% (+379K)
Restricted Shares Updated:
🔴 121,056,746 (2023-10-16)
🟢 121,436,060 (2023-10-30)
Difference: +0.3% (+379K)
Galapagos reports third quarter 2023 results and releases new encouraging data from CAR-T studies for presentation at ASH 2023
Source: GlobeNewswire Inc.
First nine months 2023 key financials:
Group revenues of €448.9 million
Jyseleca® net sales of €82.1 million
Cash and current financial investments of €3.8 billion at 30 September 2023
Full year 2023 net Jyseleca® sales guidance of €100-€120 million and cash burn guidance of €380-€420 million reiterated
Jyseleca® strategic evaluation completed: signed Letter of Intent to transfer the Jyseleca® (filgotinib) business to Alfasigma, including the European and UK Marketing Authorizations and development activities, and approximately 400 positions in 14 European countries
Oncology pipeline:
New encouraging data from ongoing CAR-T Phase 1/2 studies in relapsed/refractory chronic lymphocytic leukemia (rrCLL) and non-Hodgkin lymphoma (rrNHL) will be presented at ASH:
GLPG5201 in rrCLL: On the higher dose level, 6 of 6 patients responded to treatment (Objective Response Rate, ORR, of 100%) and 5 of 6 patients achieved a Complete Response (CRR of 83%). Overall, 11 of 12 patients responded to treatment (ORR of 92%) and 9 of 12 patients achieved a CRR (75%). 5 of 7 patients with Richter’s transformation (RT) achieved a CRR (71%). GLPG5201 shows an acceptable safety profile with no cytokine release syndrome (CRS) ≥ Grade 3 or any immune effector cell-associated neurotoxicity syndrome (ICANS) observed.
GLPG5101 in rrNHL: On the higher dose level, 5 of 6 patients achieved a CRR (83%). Overall, 11 of 13 patients responded to treatment (ORR of 85%) and 9 of 13 patients achieved a CRR (69%). GLPG5101 showed an acceptable safety profile with no CRS > Grade 3 or ICANS ≥ Grade 2 observed.
Manufacturing agreement with U.S.-based Landmark Bio marks important milestone in expanding CAR-T point-of-care network for the decentralized production in the Boston area
Immunology pipeline:
Advanced novel, oral, selective tyrosine kinase inhibitor, GLPG3667, in patients with systemic lupus erythematosus
Further progress made in initiating Phase 1b study with CD19 CAR-T candidate, GLPG5101, in patients with refractory systemic lupus erythematosus
Appointed Mr. Simon Sturge as Non-Executive Independent Director to the Board of Directors
Webcast presentation tomorrow, 3 November 2023, at 13:00 CET / 8:00 am ET, www.glpg.com
Mechelen, Belgium; 2 November 2023, 21:01 CET; regulated information – Galapagos NV (Euronext & NASDAQ: GLPG) today announced its financial results for the first nine months of 2023, a year-to-date business update and its outlook for the remainder of 2023.
“We continue to be very encouraged by the safety and efficacy results observed in the ongoing Phase 1/2 studies with our CD19 CAR-T programs, GLPG5201 and GLPG5101, with additional data to be presented at the upcoming ASH conference in December. The new data released today indicate that both CAR-T candidates have the potential to improve survival for patients with a broad range of B-cell malignancies such as rrCLL and rrNHL. Moreover, the data show that our platform for the decentralized production of fresh CAR-T products, close to patients, has the potential to reduce the median vein-to-vein time to only seven days. We look forward to further building our data package following the agreement with Boston-based Landmark Bio, which is a key milestone in the geographical expansion of this unique point-of-care model and the start of clinical development of our CAR-T programs in the U.S.,” said Dr. Paul Stoffels1, CEO and Chairman of Galapagos.
“We made good progress with our small molecules clinical pipeline in immunology and dosed the first patient in the Phase 2 study with our novel, oral, selective tyrosine kinase inhibitor, GLPG3667, in systemic lupus erythematosus. We also continue to prepare for the initiation of our Phase 1b study with CD 19 CAR-T candidate, GLPG5101, in patients with refractory systemic lupus erythematosus,” concluded Dr. Paul Stoffels, CEO and Chairman of Galapagos.
“We ended the third quarter with a solid cash position of €3.8 billion and reiterate our cash burn guidance of €380-€420 million,” said Thad Huston, CFO and COO of Galapagos. “Earlier this week, we announced that we completed the strategic evaluation exercise for Jyseleca® and that we signed a letter of intent with Alfasigma for the transfer of the Jyseleca® business. This planned transaction is a major step in our transformation, allowing us to right-size our organization and focus our resources on building an R&D pipeline of transformational medicines, addressing high unmet patient needs.”
Third quarter 2023 performance and recent business update
Oncology portfolio
GLPG5201 (CD19 CAR-T) in relapsed/refractory chronic lymphocytic leukemia (CLL), with or without Richter’s transformation (RT)
The Phase 1 dose-finding part of the EUPLAGIA-1-study has been completed and preparations to start the Phase 2 dose expansion are ongoing.
New preliminary data (data cut-off: 26 April 2023), for 12 patients enrolled in EUPLAGIA-1, will be presented at ASH (see ASH abstract and poster presentation details below). All 12 patients were diagnosed with rrCLL, 7 of 12 with RT. The results included in the abstract are summarized below:
GLPG5201 showed an acceptable safety profile with most treatment emergent adverse events (TEAEs) of Grade 1 or 2. CRS Grade 1 or 2 was observed in 50% of the patients, and no CRS Grade ≥ 3 or any ICANS were observed. No deaths were reported.
11 of 12 patients responded to treatment (Objective Response Rate, ORR of 92%). 9 of 12 patients achieved a Complete Response (CRR of 75%). 5 of 7 patients with RT achieved a CRR (71%). On the higher dose level, 6 of 6 patients responded to treatment (ORR of 100%) and 5 of 6 patients achieved a CRR (83%).
Strong and consistent in vivo CAR-T expansion levels and a product consisting of early phenotype T cells were observed in all doses tested.
The data show that our point-of-care platform has the potential to deliver fresh product in a median vein-to-vein time of 7 days.
GLPG5101 (CD19 CAR-T) in relapsed/refractory non-Hodgkin lymphoma (rrNHL)
We are in the final stages of the Phase 1 dose-finding part of the ongoing Phase 1/2 ATALANTA-1 study, which enrolled patients with diffuse large B cell lymphoma (DLBCL), mantle cell lymphoma and indolent lymphoma. The Phase 2 expansion cohorts for indolent lymphoma and mantle cell lymphoma are open and the first 10 patients have been dosed. Recruitment is ongoing.
New preliminary data (data cut-off: 2 May 2023) for 14 patients enrolled in ATALANTA-1 will be presented at ASH (see ASH abstract and poster presentation details below). 7 patients had diffuse large B-cell lymphoma, 3 had follicular lymphoma, 3 had mantle cell lymphoma and 1 had marginal zone lymphoma. The results included in the abstract are summarized below:
GLPG5101 showed an acceptable safety profile with most TEAEs of Grade 1 or 2. No CRS Grade > 3 and no ICANS Grade ≥ 2 were observed. In two patients, Grade 3-4 infections were observed, and three patients experienced Grade 4 neutropenia.
One Grade 5 intra-abdominal hemorrhage occurred 12 days post infusion caused by Grade 4 disseminated intravascular coagulation. This event occurred in an elderly patient with very rapidly progressive, primary refractory, double hit DLBCL, severe comorbidities, including a medical history of pulmonary embolism pre-CAR-T treatment, complicated by a Grade 3 CRS and respiratory insufficiency. One patient developed Grade 5 sepsis at six months post infusion while the patient was in ongoing CR.
11 out of 13 evaluable patients responded to treatment (ORR of 85%) and 9 of 13 evaluable patients achieved a Complete Response (CRR of 69%). 5 of 6 patients treated with the higher dose achieved a CRR (83%). 7 of 13 patients reported an ongoing response at time of analysis, with a duration of up to 12 months (median follow-up of 4.5 months).
Strong and consistent in vivo CAR-T expansion levels and a product consisting of early phenotype T cells were observed in all doses tested.
The data show that our point-of-care platform has the potential to deliver fresh product in a median vein-to-vein time of 7 days.
Building a global CAR-T point-of-care network
We signed an agreement with Boston-based Landmark Bio and started the technology transfer for the decentralized production of our CAR-T cell therapy candidates, a key milestone to expand our CAR-T programs beyond Europe and start clinical development in the U.S.
Immunology portfolio
Jyseleca® (filgotinib) (JAK1)
Jyseleca® is reimbursed for rheumatoid arthritis (RA) and ulcerative colitis (UC) in 22 and 20 countries respectively. Sobi2, our distribution and commercialization partner in Eastern and Central Europe, Portugal, Greece, and the Baltic countries, launched Jyseleca® in Slovenia in both RA and UC, and in Poland in RA.
Pipeline programs
We dosed the first patients in the Phase 2 GALACELA study of our novel, oral, selective tyrosine kinase 2 (TYK2) inhibitor, GLPG3667, in patients with systemic lupus erythematosus (SLE). Recruitment in the Phase 2 study in dermatomyositis is also ongoing.
We are preparing to open the first clinical centers to begin screening of patients with refractory SLE (rSLE) in the Phase 1b GALALUCA study with our CD19 CAR-T candidate, GLPG5101.
Corporate update
The Board of Directors appointed Mr. Simon Sturge as Non-Executive Independent Director by way of co-optation on 19 September 2023, replacing Dr. Mary Kerr who stepped down on 18 September 2023.
On 30 October 2023, Galapagos announced that it signed a letter of intent to transfer the Jyseleca® business to Alfasigma, including the European and UK Marketing Authorizations and development activities, and approximately 400 positions in 14 European countries. Galapagos also announced that it intends to streamline its remaining operations and further build efficiencies, with an envisaged reduction of approximately 100 positions across the organization. Completion of the intended transaction is subject to customary conditions, including consultations with works councils.
Financial highlights for the first nine months of 2023 (unaudited)
(€ millions, except basic & diluted income/loss (-) per share)
Nine months ended 30 September Change
2023 2022
Product net sales 82.1 60.5 +36%
Collaboration revenues 366.8 349.7 +5%
Total net revenues 448.9 410.2 +9%
Cost of sales (13.6) (7.9) +71%
R&D expenditure (312.2) (364.1) -14%
G&Aii and S&Miii expenses (182.2) (202.7) -10%
Other operating income 40.1 29.5 +36%
Operating loss (19.0) (135.1)
Fair value adjustments and net currency exchange differences 36.2 130.9
Net other financial result 50.4 (3.4)
Income taxes (13.5) (3.2)
Net profit/loss (-) of the period 54.1 (10.8)
Basic and diluted income/loss (-) per share (€) 0.82 (0.16)
Current financial investments and cash and cash equivalents 3,811.7 (*) 4,362.1(**)
(*) Starting from Q3 2023, our current financial investments and cash and cash equivalents include accrued interests (for a total of 21.7 million on 30 September 2023).
(**) Excluding €4.7 million of net accrued interest income.
Details of the financial results of the first nine months of 2023
Total net revenues for the nine months ended 30 September 2023 was €448.9 million, compared to €410.2 million for the nine months ended 30 September 2022, and consisted of:
Product net salesof Jyseleca®in Europe for the first nine months of 2023 amounting to €82.1 million (€60.5 million in the first nine months of 2022).
Collaboration revenuesof €366.8 million for the first nine months of 2023, compared to €349.7 million for the first nine months of 2022.
Collaboration revenues increased mainly due to revenue recognition related to the collaboration agreement with Gilead for the filgotinib development amounting to €186.0 million in the first nine months of 2023 compared to €166.8 million for the same period last year. This increase is primarily driven by a positive catch-up of revenue explained by a decrease in the total estimated remaining costs to complete the filgotinib development. This was a consequence of the topline results from the Phase 3 DIVERSITY trial with filgotinib in CD and our decision not to submit a Marketing Authorization Application in Europe.
Our deferred income balance on 30 September 2023 includes €1.4 billion allocated to our drug discovery platform that is recognized linearly over the remaining period of our 10-year collaboration, and €0.3 billion allocated to the filgotinib development that is recognized over time until the end of the development period.
Total operating loss for the nine months ended 30 September 2023 was €19.0 million, compared to total operating loss of €135.1 million for the first nine months ended 30 September 2022.
Cost of sales related to Jyseleca® net sales in the first nine months of 2023 amounted to €13.6 million (€7.9 million in the first nine months of 2022).
R&D expenditure in the first nine months of 2023 amounted to €312.2 million, compared to €364.1 million for the first nine months of 2022. This decrease was primarily explained by lower personnel costs due to lower bonuses and cost of subscription right plans, lower external outsourcing costs and lower depreciation costs. This decrease in depreciation costs was primarily due to an impairment recorded in the first nine months of 2022 of €26.7 million of previously capitalized upfront fees related to our collaboration with Molecure on the dual chitinase inhibitor OATD-01 (GLPG4716).
S&M and G&A expenses amounted to €182.2 million in the first nine months of 2023, compared to €202.7 million in the first nine months of 2022. This decrease was primarily due to a decrease in personnel costs and agency deliverables.
Other operating income amounted to €40.1 million in the first nine months of 2023, compared to €29.5 million for the same period last year, mainly due to higher grant income.
Net financial income in the first nine months of 2023 amounted to €86.6 million, compared to net financial income of €127.5 million for the first nine months of 2022.
Fair value adjustments and net currency exchange gains in the first nine months of 2023 amounted to €36.2 million, compared to fair value adjustments and net currency exchange gains of €130.9 million for the first nine months of 2022, and were primarily attributable to €33.7 million of positive changes in fair value of current financial investments (compared to 26.0 million for the first nine months of 2022), and €3.5 million of unrealized currency exchange gains on our cash and cash equivalents and current financial investments at amortized cost in U.S. dollars (compared to €102.1 million for the first nine months of 2022).
Net other financial income in the first nine months of 2023 amounted to €50.4 million, compared to net other financial expenses of €3.4 million for the first nine months of 2022, and was primarily attributable to €54.6 million of interest income, which increased significantly due to the increase in interest rates.
We reported a group net profit for the first nine months of 2023 of €54.1 million, compared to a group net loss of €10.8 million for the first nine months of 2022.
Cash position
Current financial investments and cash and cash equivalents totaled €3,811.7 million on 30 September 2023, as compared to €4,094.1 million on 31 December 2022 (excluding €9.9 million of net accrued interest income).
Total net decrease in cash and cash equivalents and current financial investments amounted to €282.4 million during the first nine months of 2023, compared to a net decrease of €341.1 million during the first nine months of 2022. This net decrease was composed of (i) €343.8 million of operational cash burn, offset by (ii) €3.5 million of positive exchange rate differences, (iii) €1.8 million of cash proceeds from capital and share premium increase from exercise of subscription rights in the first nine months of 2023, (iv) €24.5 million positive changes in fair value of current financial investments and (v) €20.2 million of accrued interest income on term deposits and €11.4 million accrued interest income on treasury bills.
Outlook 2023
Financial outlook
We reiterate our full year 2023 net sales guidance for Jyseleca® of €100-€120 million and full year 2023 cash burn guidance in the range of €380-€420 million.
R&D outlook
Oncology pipeline
We expect to include the first patient in the PAPILIO-1 Phase 1/2 study evaluating the feasibility, safety, and efficacy of our point-of-care manufactured BCMA CAR-T candidate, GLPG5301, in relapsed/refractory multiple myeloma (rrMM) in the coming weeks. The study will be conducted in centers across Europe.
Three abstracts on our CAR-T portfolio in hemato-oncology have been selected for poster presentations at the 65th Society of Hematology (ASH) Annual Meeting and exposition conference taking place on 9-12 December in San Diego, California (see details below). The two presentations on EUPLAGIA-1 and ATALANTA-1 will include more recent data updates and additional data not found in the ASH abstracts. One presentation will outline the clinical study design of the PAPILIO-1 Phase 1/2 study.
Following the point-of-care manufacturing agreement with Boston-based Landmark Bio, we expect to submit an Investigational New Drug Application in the U.S. to start clinical development with our CD19 CAR-T programs in the first half of 2024.
Immunology portfolio
Pending approval of the Clinical Trial Application submitted in the European Union for our CD19 CAR-T candidate, GLPG5101, in patients with rSLE, we expect to open the first clinical centers and begin screening patients with rSLE in early 2024.
Business development
We will continue to extensively evaluate various product candidates and business development opportunities to further leverage our internal capabilities and accelerate and expand our product portfolio.
Conference call and webcast presentation
We will host a conference call and webcast presentation tomorrow 3 November 2023, at 13:00 CET / 8:00 am ET. To participate in the conference call, please register in advance using this link, after which the dial-in numbers will be provided. The conference call can be accessed 10 minutes prior to the start by using the conference access information provided in the email after registration, or by selecting the “call me” feature. The live webcast is available on glpg.com or via the following link. The archived webcast will be available for replay shortly after the close of the call on the investor section of the website.
ASH presentation details
Abstract Title Authors Presentation details
Seven-day Vein-to-Vein Point-of-Care Manufactured CD19 CAR T Cells (GLPG5201) in Relapsed/Refractory CLL/SLL including Richter’s Transformation: Results from the Phase 1 Euplagia-1 Trial Natalia Tovar, Valentin Ortiz-Maldonado, Nuria Martinez-Cibrian, Sergi Betriu, Daniel Esteban, Ana Triguero, Nadia Verbruggen, Anna D.D. van Muyden, Maike Spoon, Margot J. Pont Abstract
Poster Number: 2112
Date: 9 Dec 2023, 5:30–7:30 pm
Session: Cellular Immunotherapies: Early Phase and Investigational Therapies: Poster I
Seven-day Vein-to-Vein Point-of-Care Manufactured CD19 CAR T Cells (GLPG5101) in Relapsed/Refractory NHL: Results from the Phase 1 Atalanta-1 Trial Marie José Kersten, Kirsten Saevels, Sophie Servais, Yves Beguin, Joost Vermaat, Nadia Verbruggen, Anna DD Van Muyden, Margot J Pont, Maria T Kuipers, Sébastien Anguille Abstract
Poster Number: 2113
Date: 9 Dec 2023, 5:30–7:30 pm
Session: Cellular Immunotherapies: Early Phase and Investigational Therapies: Poster I
Rationale for and Design of Papilio-1: a Phase 1/2, Multicenter, Open-Label Study to Evaluate the Feasibility, Safety, and Efficacy of Point-of-Care–Manufactured Anti–B-Cell Maturation Antigen Chimeric Antigen Receptor T Cells (GLPG5301) in Relapsed/Refractory Multiple Myeloma Niels van der Donk, Sebastien Anguille, Jo Caers, Marte C. Liefaard, Christian Jacques, Anna D.D. van Muyden Abstract
Poster Number: 4859
Date: 11 Dec 2023, 6:00–8:00 pm
Session: Cellular Immunotherapies: Early Phase and Investigational Therapies: Poster III
Financial calendar 2024
22 February 2024
28 March 2024
30 April 2024
2 May 2024
1 August 2024
30 October 2024 Full year 2023 results
Annual report 2023
Annual Shareholders’ Meeting
First quarter 2024 results
Half-year 2024 results
Third quarter 2024 results (webcast 23 February 2024)
(webcast 3 May 2024)
(webcast 2 August 2024)
(webcast 31 October 2024)
About Galapagos
We are a global biotechnology company with operations in Europe and the US dedicated to developing transformational medicines for more years of life and quality of life. Focusing on high unmet medical needs, we synergize the most compelling science, technology, and collaborative approaches to create a deep pipeline of best-in-class small molecules, CAR-T therapies, and biologics in oncology and immunology. With capabilities from lab to patient, including a decentralized, point-of-care CAR-T manufacturing network, we are committed to challenging the status quo and delivering results for our patients, employees and shareholders. For additional information, please visit www.glpg.com or follow us on LinkedIn or X (formerly Twitter).
Jyseleca® is a trademark of Galapagos NV and Gilead Sciences, Inc. or its related companies. Except for filgotinib’s approval as Jyseleca® for the treatment of moderate to severe active RA and UC by the relevant regulatory authorities in the European Union, Great Britain, and Japan, our drug candidates are investigational; their efficacy and safety have not been fully evaluated by any regulatory authority.
Contact
Media inquiries:
Marieke Vermeersch
+32 479 490 603
media@glpg.com Investor inquiries:
Sofie Van Gijsel
+1 781 296 1143
ir@glpg.com
Sandra Cauwenberghs
ir@glpg.com
Forward-looking statements
This release may contain forward-looking statements, all of which involve certain risks and uncertainties. These statements are often, but are not always, made through the use of words or phrases such as “anticipate,” “on track,” “expect, ” “encouraging,” “expand,” “advance,” “plan,” “estimate,” “will,” “continue,” “aim,” “intend,” “future,” “guidance,” “outlook,”, ”indicate”, “forward,” as well as similar expressions. Forward-looking statements contained in this release include, but are not limited to, statements made in the sections captioned “Third quarter 2023 performance and recent business update” and “Outlook 2023”, the guidance from management regarding our expected operational use of cash and estimated peak sales for Jyseleca® during the financial year 2023, statements related to the contemplated transaction between Galapagos and Alfasigma and the planned reduction in force, statements regarding our strategic and capital allocation priorities, including progress on our immunology or oncology portfolio, our CAR-T-portfolio and our SIKi-portfolio, and potential changes of such plans, statements regarding our pipeline and complementary technology platforms facilitating future growth, statements regarding our regulatory and R&D outlook, statements regarding the expected timing, design and readouts of ongoing and planned clinical trials, including but not limited to (i) filgotinib in juvenile arthritis, (ii) GLPG5101 in rrNHL and rSLE, (iii) GLPG5201 in rrCLL, and (iv) GLPG5301 in rrMM, statements regarding our commercialization efforts for filgotinib, our product candidates, and any of our future approved products, if any, statements regarding our expectations on commercial sales of filgotinib and any of our product candidates (if approved), statements related to the timing for submission of an Investigational New Drug application and the clinical development of our CAR-T program in the United States, and statements related to our portfolio goals and business plans. Any forward-looking statements in this release are based on management’s current expectations and beliefs and are not guarantees of future performance. Forward-looking statements involve known and unknown risks, uncertainties and other factors which might cause our actual results, financial condition and liquidity, performance or achievements to be materially different from any historic or future results, financial conditions and liquidity, performance or achievements expressed or implied by such forward-looking statements. Such risks include, but are not limited to, the risk that our expectations regarding our 2023 revenues, operating expenses, cash burn and other financial estimates may be incorrect (including because one or more of our assumptions underlying our revenue and expense expectations may not be realized), the risk that ongoing and future clinical trials may not be completed in the currently envisaged timelines or at all, the inherent risks and uncertainties associated with competitive developments, clinical trials, recruitment of patients, product development activities and regulatory approval requirements (including the risk that data from our ongoing and planned clinical research programs in RA, UC, DM, SLE, AxSpA, refractory/relapsed NHL, rrCLL, rrSLL, rrMM and other immunologic indications or any other indications or diseases, may not support registration or further development of our product candidates due to safety or efficacy concerns or other reasons), risks related to the acquisitions of CellPoint and AboundBio, including the risk that we may not achieve the anticipated benefits of the acquisitions of CellPoint and AboundBio, the inherent risks and uncertainties associated with target discovery and validation and drug discovery and development activities, the risk that the preliminary and topline data from the OLINGUITO, ATALANTA-1, EUPLAGIA-1, GALARISSO, TORTUGA, PAPILIO-1, GALALUCA and GALACELA-studies may not be reflective of the final data, risks related to our reliance on collaborations with third parties (including, but not limited to, our collaboration partners Gilead and Lonza), risks related to the implementation of the transition of the European commercialization responsibility of filgotinib from Gilead to us, including the transfer of the supply chain, and the risk that the transition will not have the currently expected results for our business and results of operations, the risk that our plans with respect to CAR-T may not be achieved on the currently anticipated timeline or at all, the risk that our estimates of the commercial potential of our product candidates or expectations regarding the costs and revenues associated with the commercialization rights may be inaccurate, the risk that we will not be able to continue to execute on our currently contemplated business plan and/or will revise our business plan, the risks related to our strategic transformation, including the risk that we may not achieve the anticipated benefits of such exercise on the currently envisaged timeline or at all, the risk that we will encounter challenges retaining or attracting talent, risks related to potential disruptions in our operations, the risk that the EMA may impose JAK class-based warnings, and the risk that the EMA’s safety review may negatively impact acceptance of filgotinib by patients, the medical community, and healthcare payors, the risk that regulatory authorities may require additional post-approval trials of filgotinib or any other product candidates that are approved in the future. A further discussion of these risks, uncertainties and other risks can be found in our filings and reports with the Securities and Exchange Commission (SEC), including in our most recent annual report on Form 20-F filed with the SEC and other filings and reports filed with the SEC. Given these risks and uncertainties, the reader is advised not to place any undue reliance on such forward-looking statements. In addition, even if our results, performance, financial condition and liquidity, and the development of the industry in which we operate are consistent with such forward-looking statements, they may not be predictive of results or developments in future periods. These forward-looking statements speak only as of the date of publication of this release. We expressly disclaim any obligation to update any such forward-looking statements in this release unless required by law or regulation.
i The operational cash burn (or operational cash flow if this liquidity measure is positive) is equal to the increase or decrease in our cash and cash equivalents (excluding the effect of exchange rate differences on cash and cash equivalents), minus:
the net proceeds, if any, from share capital and share premium increases included in the net cash flows generated from/used in (-) financing activities
the net proceeds or cash used, if any, in acquisitions or disposals of businesses; the movement in restricted cash and movement in current financial investments, if any, the cash advances and loans given to third parties, if any, included in the net cash flows generated from/used in (-) investing activities
the cash used for other liabilities related to the acquisition of businesses, if any, included in the net cash flows generated from/used in (-) operating activities.
This alternative liquidity measure is in our view an important metric for a biotech company in the development stage. The operational cash burn for the nine months ended 30 September 2023 amounted to €343.8 million and can be reconciled to our cash flow statement by considering the decrease in cash and cash equivalents of €348.1 million, adjusted by (i) the cash proceeds from capital and share premium increase from the exercise of subscription rights by employees for €1.8 million, and (ii) the net purchase of current financial investments amounting to €6.1 million.
ii General and administrative
iii Sales and marketing
Addendum
Consolidated statements of income and comprehensive income/loss (-) (unaudited)
Consolidated income statement
Nine months ended
30 September
(thousands of €, except per share data) 2023 2022
Product net sales 82,075 60,491
Collaboration revenues 366,773 349,669
Total net revenues 448,848 410,160
Cost of sales (13,540) (7,938)
Research and development expenditure (312,180) (364,067)
Sales and marketing expenses (88,147) (105,313)
General and administrative expenses (94,022) (97,373)
Other operating income 40,086 29,474
Operating loss (18,954) (135,056)
Fair value adjustments and net currency exchange differences 36,247 130,900
Other financial income 55,122 9,675
Other financial expenses (4,767) (13,074)
Profit/loss (-) before tax 67,648 (7,555)
Income taxes (13,510) (3,229)
Net profit/loss (-) 54,138 (10,784)
Net profit/loss (-) attributable to:
Owners of the parent 54,138 (10,784)
Basic and diluted income/loss (-) per share 0.82 (0.16)
Consolidated statement of comprehensive income/loss (–)
Nine months ended
30 September
(thousands of €) 2023 2022
Net profit/loss (-) 54,138 (10,784)
Items that may be reclassified subsequently to profit or loss:
Translation differences, arisen from translating foreign activities 318 (7)
Other comprehensive income/loss (-), net of income tax 318 (7)
Total comprehensive income/loss (-) attributable to:
Owners of the parent 54,456 (10,791)
Consolidated statements of financial position (unaudited)
30 September 31 December
(thousands of €) 2023 2022
Assets
Goodwill 69,863 69,813
Intangible assets other than goodwill 132,313 146,354
Property, plant and equipment 136,803 154,252
Deferred tax assets 1,232 1,363
Non-current R&D incentives receivables 138,121 119,941
Other non-current assets 16,911 5,778
Non-current assets 495,244 497,501
Inventories 55,605 52,925
Trade and other receivables 46,918 40,429
Current R&D incentives receivables 26,126 26,126
Current financial investments 3,652,333 3,585,945
Cash and cash equivalents 159,375 508,117
Other current assets 15,735 23,307
Current assets 3,956,092 4,236,850
Total assets 4,451,336 4,734,351
Equity and liabilities
Share capital 293,937 293,604
Share premium account 2,736,993 2,735,557
Other reserves (4,932) (4,853)
Translation differences (1,196) (1,593)
Accumulated losses (403,242) (496,689)
Total equity 2,621,560 2,526,026
Retirement benefit liabilities 2,408 5,540
Deferred tax liabilities 25,325 20,148
Non-current lease liabilities 8,469 14,692
Other non-current liabilities 31,449 21,808
Non-current deferred income 1,318,090 1,623,599
Non-current liabilities 1,385,741 1,685,787
Current lease liabilities 5,678 7,209
Trade and other liabilities 121,129 148,675
Current tax payable 1,764 1,022
Current deferred income 315,465 365,631
Current liabilities 444,036 522,538
Total liabilities 1,829,776 2,208,325
Total equity and liabilities 4,451,336 4,734,351
Consolidated cash flow statements (unaudited)
Nine months ended
30 September
(thousands of €) 2023 2022
Net profit/loss (-) of the period 54,138 (10,784)
Adjustment for non-cash transactions 44,344 (25,707)
Adjustment for items to disclose separately under operating cash flow (40,165) 1,599
Adjustment for items to disclose under investing and financing cash flows (11,809) (1,700)
Change in working capital other than deferred income (50,329) 57,472
Cash used for other liabilities related to the acquisition of subsidiaries - (11,080)
Decrease in deferred income (359,259) (318,167)
Cash used in operations (363,081) (308,367)
Interest paid (3,729) (10,940)
Interest received 35,063 2,262
Corporate taxes paid (7,357) (3,637)
Net cash flows used in operating activities (339,104) (320,682)
Purchase of property, plant and equipment (11,073) (19,808)
Purchase of and expenditure in intangible fixed assets (222) (9,308)
Proceeds from disposal of property, plant and equipment 2,304 719
Purchase of current financial investments (2,615,112) (2,505,688)
Investment income received related to current financial investments 9,857 1,181
Sale of current financial investments 2,609,023 1,394,549
Cash out from acquisition of subsidiaries, net of cash acquired - (115,270)
Cash advances and loans to third parties - (10,000)
Net cash flows used in investing activities (5,222) (1,263,625)
Payment of lease liabilities (5,580) (6,263)
Proceeds from capital and share premium increases from exercise of subscription rights 1,770 6,695
Net cash flows generated from/used in (-) financing activities (3,810) 432
Decrease in cash and cash equivalents (348,136) (1,583,875)
Cash and cash equivalents at beginning of year 508,117 2,233,368
Decrease in cash and cash equivalents (348,136) (1,583,875)
Effect of exchange rate differences on cash and cash equivalents (607) 26,026
Cash and cash equivalents at end of the period 159,375 675,519
30 September
(thousands of €) 2023 2022
Current financial investments 3,652,333 3,686,557
Cash and cash equivalents 159,375 675,519
Current financial investments and cash and cash equivalents 3,811,708 4,362,076
Consolidated statements of changes in equity (unaudited)
(thousands of €) Share capital Share premium account Translation differences Other reserves Accumulated losses Total
On 1 January 2022 292,075 2,730,391 (1,722) (10,177) (367,205) 2,643,362
Net loss (10,784) (10,784)
Other comprehensive income/loss (-) 676 (683) (7)
Total comprehensive income/loss (-) 676 (683) (10,784) (10,791)
Share-based compensation 51,085 51,085
Exercise of subscription rights 1,530 5,165 6,695
On 30 September 2022 293,604 2,735,557 (1,046) (10,860) (326,905) 2,690,351
On 1 January 2023 293,604 2,735,557 (1,593) (4,853) (496,689) 2,526,026
Net profit 54,138 54,138
Other comprehensive income/loss (-) 397 (79) 318
Total comprehensive income/loss (-) 397 (79) 54,138 54,456
Share-based compensation 39,308 39,308
Exercise of subscription rights 333 1,437 1,770
On 30 September 2023 293,937 2,736,993 (1,196) (4,932) (403,242) 2,621,560
1 Throughout this press release, ‘Dr. Paul Stoffels’ should be read as ‘Dr. Paul Stoffels, acting via Stoffels IMC BV’
2 Swedish Orphan Biovitrum AB
Attachment
Galapagos reports third quarter 2023 results and releases new encouraging data from CAR-T studies for presentation at ASH 2023
Primary Logo
Tyler Technologies Reports Earnings for Third Quarter 2023
Source: Business Wire
SaaS revenues grew 26%; cash from operations rose 37.2%
Tyler Technologies, Inc. (NYSE: TYL) today announced financial results for the third quarter ended September 30, 2023.
Third Quarter 2023 Financial Highlights:
Revenues
Total revenues were $494.7 million, up 4.5% from the third quarter of 2022. On an organic basis, revenues grew 6.0%.
Recurring Revenues
Recurring revenues from maintenance and subscriptions were $412.7 million, up 11.0% from the third quarter of 2022, and comprised 83.4% of total revenues (compared to 78.5% for the third quarter of 2022). On an organic basis, recurring revenues grew 9.8%.
Subscription revenues were $295.2 million, up 16.1% from the third quarter of 2022. On an organic basis, subscription revenues grew 14.7%. Within subscriptions:
SaaS revenues grew organically 26.0% to $138.5 million.
Transaction-based revenues grew 8.5% to $156.7 million. On an organic basis, transaction-based revenues grew 6.0%.
SaaS arrangements comprised approximately 80% of the total new software contract value, compared to approximately 91% for the third quarter of 2022.
Annualized recurring revenue (ARR) was $1.65 billion, up 11.0% from the third quarter of 2022.
Earnings/EBITDA
GAAP operating income was $63.9 million, up 5.0% from the third quarter of 2022. Non-GAAP operating income was $122.5 million, up 4.0% from the third quarter of 2022.
GAAP net income was $47.0 million, or $1.10 per diluted share, down 11.7% from the third quarter of 2022. Non-GAAP net income was $91.6 million, or $2.14 per diluted share, up 4.9% from the third quarter of 2022.
Adjusted EBITDA was $132.5 million, up 4.4% from the third quarter of 2022.
Cash Flow
Cash flows from operations were $177.5 million, up 37.2%, compared to $129.4 million for the third quarter of 2022. Free cash flow was $162.7 million, up 40.7%, compared to $115.6 million for the third quarter of 2022. During the third quarter, cash tax payments included approximately $22 million related to IRS Section 174 capitalization rules.
Acquisition
During the third quarter, we completed the acquisition of Computer Systems Innovations (CSI) for a cash purchase price of approximately $36 million, net of cash acquired.
"Our third quarter earnings and cash flow surpassed expectations and reflect a continuation of solid execution on key operational initiatives," said Lynn Moore, Tyler's president and chief executive officer. "We achieved strong performance across our key metrics, with double-digit recurring revenue growth and free cash flow growth of more than 40%. We're pleased that SaaS revenues grew 26% organically, exceeding our near-term SaaS growth expectations of a 20% CAGR outlined during our June Investor Day. This represents our 11th consecutive quarter of SaaS revenue growth of 20% or more. Additionally, operating margins exceeded our plan and we remain on track to return to operating margin expansion in 2024.
"Our results demonstrate the strength and resilience of our business model against a backdrop of stable public sector demand, as our leading sales activity indicators remain strong. M&A is one of our key growth pillars, and during the quarter we enhanced our product portfolio by acquiring CSI, which brings AI-driven automation and enhanced document processing technology that can be leveraged across many of Tyler's vertical applications. We continue to prioritize debt reduction with our free cash flow, and we reduced our term debt by $135 million during the quarter, bringing our net leverage to 1.24 times proforma EBITDA. Our strong year-to-date performance is underpinned by our powerful growth algorithm, strong balance sheet, and our unique ability to deliver mission-critical cloud-based solutions enabling the public sector's ongoing digital transformation," concluded Moore.
Guidance for 2023
As of November 1, 2023, Tyler Technologies is providing the following guidance for the full year 2023:
Total revenues are expected to be in the range of $1.942 billion to $1.962 billion.
GAAP diluted earnings per share are expected to be in the range of $3.82 to $3.96 and may vary significantly due to the impact of stock option activity on the GAAP effective tax rate.
Non-GAAP diluted earnings per share are expected to be in the range of $7.66 to $7.80.
Interest expense is expected to be approximately $24 million, including approximately $5 million of non-cash amortization of debt discounts and issuance costs.
Pretax non-cash, share-based compensation expense is expected to be approximately $110 million.
Research and development expense is expected to be in the range of $114 million to $115 million.
Fully diluted shares for the year are expected to be in the range of 42.5 million to 43.0 million shares.
GAAP earnings per share assumes an estimated annual effective tax rate of approximately 16.5% after discrete tax items, including approximately $9 million of discrete tax benefits related to share-based compensation.
The non-GAAP annual effective tax rate is expected to be 22.0%.
Capital expenditures are expected to be in the range of $58 million to $60 million, including approximately $35 million of capitalized software development costs. Total depreciation and amortization expense is expected to be approximately $148 million, including approximately $109 million from amortization of acquisition intangibles.
GAAP to non-GAAP guidance reconciliation
Non-GAAP diluted earnings per share excludes the estimated full-year impact of non-cash share-based compensation expense and employer portion of payroll tax related to employee stock transactions of approximately $110 million, amortization of acquired software and intangible assets of approximately $109 million, and acquisition-related costs, lease restructuring costs and other of approximately $6 million. Additionally, the non-GAAP tax rate of 22.0% is estimated periodically as described below under "Non-GAAP Financial Measures" and excludes approximately $9 million of estimated discrete tax benefits that are included in the GAAP estimated annual effective tax rate.
Conference Call
Tyler Technologies will hold a conference call on Thursday, November 2, 2023, at 10:00 a.m. ET to discuss the company’s results. Participants can pre-register for the teleconference at the following link: https://conferencingportals.com/event/eqivMdEU. Registered participants will receive an email with a calendar reminder, dial-in number, and conference ID that allows them immediate access to the call.
The live audio webcast and archived replay can also be accessed at https://investors.tylertech.com/events-and-presentations/default.aspx.
About Tyler Technologies, Inc.
Tyler Technologies (NYSE: TYL) provides integrated software and technology services to the public sector. Tyler's end-to-end solutions empower local, state, and federal government entities to operate more efficiently and transparently with residents and each other. By connecting data and processes across disparate systems, Tyler's solutions transform how clients turn actionable insights into opportunities and solutions for their communities. Tyler has more than 40,000 successful installations across nearly 13,000 locations, with clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including Government Technology's GovTech 100 list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.
Non-GAAP Financial Measures
Tyler Technologies has provided in this press release financial measures that have not been prepared in accordance with generally accepted accounting principles (GAAP) and are therefore considered non-GAAP financial measures. This information includes non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP earnings per diluted share, EBITDA, adjusted EBITDA, and free cash flow. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating Tyler’s ongoing operational performance because they provide additional insight in comparing results from period to period. Tyler believes the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures. Non-GAAP financial measures discussed above exclude share-based compensation expense, employer portion of payroll taxes on employee stock transactions, expenses associated with amortization of intangibles arising from business combinations, acquisition-related expenses, and lease restructuring costs and other. Annualized recurring revenues (ARR) is calculated by annualizing the current quarter's recurring revenues from maintenance and subscriptions.
Tyler currently uses a non-GAAP tax rate of 22.0%. This rate is based on Tyler's estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating Tyler's non-GAAP income, as well as significant non-recurring tax adjustments. The non-GAAP tax rate used in future periods will be reviewed periodically to determine whether it remains appropriate in consideration of factors including Tyler's periodic annual effective tax rate calculated in accordance with GAAP, changes resulting from tax legislation, changes in the geographic mix of revenues and expenses, and other factors deemed significant. Due to differences in tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to Tyler's estimated annual tax rate as described above, the estimated tax rate on non-GAAP income may differ from the GAAP tax rate and from Tyler's actual tax liabilities.
Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial information prepared in accordance with GAAP. The non-GAAP measures used by Tyler Technologies may be different from non-GAAP measures used by other companies. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which has been provided in the financial statement tables included below in this press release.
Forward-looking Statements
This document contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical in nature and typically address future or anticipated events, trends, expectations or beliefs with respect to our financial condition, results of operations or business. Forward-looking statements often contain words such as “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates,” “plans,” “intends,” “continues,” “may,” “will,” “should,” “projects,” “might,” “could” or other similar words or phrases. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. We believe there is a reasonable basis for our forward-looking statements, but they are inherently subject to risks and uncertainties and actual results could differ materially from the expectations and beliefs reflected in the forward-looking statements. We presently consider the following to be among the important factors that could cause actual results to differ materially from our expectations and beliefs: (1) changes in the budgets or regulatory environments of our clients, primarily local and state governments, that could negatively impact information technology spending; (2) disruption to our business and harm to our competitive position resulting from cyber-attacks and security vulnerabilities; (3) our ability to protect client information from security breaches and provide uninterrupted operations of data centers; (4) our ability to achieve growth or operational synergies through the integration of acquired businesses, while avoiding unanticipated costs and disruptions to existing operations; (5) material portions of our business require the Internet infrastructure to be adequately maintained; (6) our ability to achieve our financial forecasts due to various factors, including project delays by our clients, reductions in transaction size, fewer transactions, delays in delivery of new products or releases or a decline in our renewal rates for service agreements; (7) general economic, political and market conditions, including continued inflation and rising interest rates; (8) technological and market risks associated with the development of new products or services or of new versions of existing or acquired products or services; (9) competition in the industry in which we conduct business and the impact of competition on pricing, client retention and pressure for new products or services; (10) the ability to attract and retain qualified personnel and dealing with the loss or retirement of key members of management or other key personnel; and (11) costs of compliance and any failure to comply with government and stock exchange regulations. These factors and other risks that affect our business are described in our filings with the Securities and Exchange Commission, including the detailed “Risk Factors” contained in our most recent annual report on Form 10-K and quarterly report on Form 10-Q. We expressly disclaim any obligation to publicly update or revise our forward-looking statements
FOR IMMEDIATE RELEASE
Camtek Announces the Closing of its Acquisition of FRT Metrology
MIGDAL HAEMEK, Israel – November 1, 2023 – Camtek Ltd. (NASDAQ: CAMT; TASE: CAMT), a leading manufacturer of metrology and inspection equipment, is pleased to announce today the closing of its acquisition of FRT Metrology ("FRT") business for $100 million in cash, subject to customary purchase price adjustments, from FormFactor (Nasdaq: FORM) which was initially announced September 18, 2023.
Rafi Amit, CEO of Camtek commented, “We are very excited to have closed this strategic transaction that expands our available markets and allows us to offer advanced solutions to additional process steps in semiconductor manufacturing. FRT’s portfolio supports our strategic goal to deliver comprehensive metrology solutions. With this expanded product and technology offering, supported by the synergy in our markets, Camtek is well-positioned for continued growth in its strategic market segments.”
For more information about Camtek Ltd. and its advanced inspection and metrology solutions, please visit www.camtek.com.
ABOUT CAMTEK LTD.
Camtek is a developer and manufacturer of high-end inspection and metrology equipment for the semiconductor industry. Camtek’s systems inspect IC and measure IC features on wafers throughout the production process of semiconductor devices, covering the front and mid-end and up to the beginning of assembly (Post Dicing). Camtek’s systems inspect and measure wafers for the most demanding semiconductor market segments, including Advanced Interconnect Packaging, Heterogenous Integration, Memory and HBM, CMOS Image Sensors, Compound Semiconductors, MEMS, and RF, serving numerous industry’s leading global IDMs, OSATs, and foundries.
With manufacturing facilities in Israel and Germany, and eight offices around the world, Camtek provides state of the art solutions in line with customers’ requirements.
This press release is available at www.camtek.com
This press release contains statements that may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on Camtek’s current beliefs, expectations and assumptions about its business and industry, all of which may change. Forward-looking statements can be identified by the use of words including “believe,” “anticipate,” “should,” “intend,” “plan,” “will,” “may,” “expect,” “estimate,” “project,” “positioned,” “strategy,” and similar expressions that are intended to identify forward-looking statements, including statements relating to the semiconductors manufacturing market and our position in this market. These forward-looking statements involve known and unknown risks and uncertainties that may cause the actual results, performance or achievements of Camtek to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, including statements regarding the companies’ products, prospects and results following the transaction and markets, the effect of the evolving nature of the recent war in Gaza between Israel and the Hamas; the impact of any new or revised export and/or import and doing-business regulations or sanctions, such as changes in U.S. trade policies; as well as those other factors discussed in our Annual Report on Form 20-F and other documents filed by Camtek.
While we believe that we have a reasonable basis for each forward-looking statement contained in this press release, we caution you that these statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. In addition, any forward-looking statements represent Camtek’s views only as of the date of this press release and should not be relied upon as representing its views as of any subsequent date. Camtek does not assume any obligation to update any forward-looking statements unless required by law.
DuPont Reports Third Quarter 2023 Results
https://s23.q4cdn.com/116192123/files/doc_financials/2023/q3/3Q23-DuPont-Earnings-News-Release-vF.pdf
Tyler Technologies Acquires ARInspect
Source: Business Wire
Acquisition to bolster Tyler’s platform technologies with intelligent field applications
Tyler Technologies, Inc. (NYSE: TYL) announced today it has acquired ARInspect, a leading provider of artificial intelligence (AI) powered machine learning solutions for public sector field operations.
Through this acquisition, Tyler adds ARInspect’s AI powered, data driven platform to its portfolio, extending Tyler’s Application Platform and other solutions with intelligent edge technology. Tyler plans to leverage ARInspect’s technology across its state and federal verticals with a focus on all regulated entities, including environmental protection, disaster recovery, and human services.
“Tyler understands the challenges that government agencies have in providing resources to field workers, including access to smart capture tools, real-time data, and the decision-making capabilities that can impact effectiveness,” said Brian Combs, president of Tyler’s Platform Solutions Division. “ARInspect’s platform and expertise in AI and machine learning combined with Tyler’s public sector experience and robust portfolio will help deliver on our promise to create smarter, safer, and stronger communities for our clients.”
ARInspect’s advanced AI and machine learning platform allows public sector field workers to work independently and to manage all activities, from pre-arrival set-up through reporting and follow-up, in the field. Beyond just automation and digitization of processes, ARInspect analyzes historical data, completed inspections, violations, integrated census data, and more. This analysis not only guides and assists field workers on site but also helps agencies identify sites, assets, and facilities that may be a risk to residents and the community.
“Over the last few years, we have seen a great demand for public sector edge technology with the power of AI and automation,” said Vivek Mehta, founder and chief executive officer of ARInspect. “We couldn’t be more excited to combine our expertise with Tyler’s to provide a powerful and user-friendly field operations platform. Our similar values and commitment make this the ideal partnership for all ARInspect and Tyler clients.”
Fairfax, Virginia-based ARInspect was founded in 2017. The ARInspect team will join Tyler’s Platform Solutions Division.
About Tyler Technologies, Inc.
Tyler Technologies (NYSE: TYL) provides integrated software and technology services to the public sector. Tyler’s end-to-end solutions empower local, state, and federal government entities to operate efficiently and transparently with residents and each other. By connecting data and processes across disparate systems, Tyler’s solutions transform how clients turn actionable insights into opportunities and solutions for their communities. Tyler has more than 40,000 successful installations across nearly 13,000 locations, with clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including Government Technology’s GovTech 100 list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.
#TYL_Financial
View source version on businesswire.com: https://www.businesswire.com/news/home/20231030117013/en/
Jennifer Kepler
Tyler Technologies
972.713.3770
Media.team@tylertech.com
Materialise Reports Third Quarter 2023 Results
October 26 2023 - 06:30AM
Business Wire
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Materialise NV (NASDAQ:MTLS), a leading provider of additive manufacturing and medical software and of sophisticated 3D printing services, today announced its financial results for the third quarter ended September 30, 2023.
Highlights – Third Quarter 2023
Total revenue increased 3.2% to 60,130 kEUR compared to 58,288 kEUR for the third quarter of 2022.
Total deferred revenue from annual software sales and maintenance fees amounted to 40,079 kEUR compared to 42,780 kEUR at December 31, 2022.
Adjusted EBITDA increased 55% to 7,857 kEUR compared to 5,072 kEUR for the corresponding 2022 period.
Net profit for the third quarter of 2023 increased 184% to 4,013 kEUR, or 0.07 EUR per diluted share, compared to 1,413 kEUR, or 0.02 EUR per diluted share, for the corresponding 2022 period.
Executive Chairman Peter Leys commented, “Once again, demand for our products and solutions remained solid throughout the third quarter of this year. While uncertain global macro-economic conditions primarily impacted our Materialise Manufacturing segment, Materialise’s consolidated revenue continued to grow, by 3% compared to the same period last year. This strong performance was mainly driven by the continued double-digit revenue increase of our Materialise Medical segment. At the same time, we grew our consolidated Adjusted EBITDA by 55% to 7,857 kEUR through our focus on leveraging scaling effects and cost control, and without compromising on our continued investments in our growth businesses.”
Third Quarter 2023 Results
Total revenue for the third quarter of 2023 increased 3.2% to 60,130 kEUR from 58,288 kEUR for the third quarter of 2022. Adjusted EBITDA amounted to 7,857 kEUR for the third quarter of 2023, a 55% increase compared to 5,072 kEUR for the corresponding 2022 period. The Adjusted EBITDA margin (Adjusted EBITDA divided by total revenue) for the third quarter of 2023 was 13.1% compared to 8.7% for the third quarter of 2022.
Revenue from our Materialise Software segment was 10,811 kEUR for the third quarter of 2023 compared to 10,863 kEUR for the same quarter last year. Segment EBITDA increased significantly to 1,781 kEUR from 202 kEUR while the segment EBITDA margin was 16.5% compared to 1.9% for the corresponding prior-year period.
Revenue from our Materialise Medical segment increased by 13.4% to 24,263 kEUR for the third quarter of 2023 compared to 21,391 kEUR for the same period in 2022. Segment EBITDA increased by 50% to 7,143 kEUR for the third quarter of 2023 compared to 4,765 kEUR while the segment EBITDA margin was 29.4% compared to 22.3% for the third quarter of 2022.
Revenue from our Materialise Manufacturing segment decreased 3.8% to 25,056 kEUR for the third quarter of 2023 from 26,033 kEUR for the third quarter of 2022. Segment EBITDA amounted to 1,074 kEUR compared to 2,530 kEUR for the same period last year, while the segment EBITDA margin was 4.3% compared to 9.7% for the third quarter of 2022.
Gross profit was 33,696 kEUR compared to 32,042 kEUR for the same period last year, while gross profit as a percentage of revenue increased to 56.0% compared to 55.0% for the third quarter of 2022.
Research and development (“R&D”), sales and marketing (“S&M”) and general and administrative (“G&A”) expenses decreased, in the aggregate, 4.2% to 32,076 kEUR for the third quarter of 2023 from 33,491 kEUR for the third quarter of 2022.
Net other operating income decreased to 710 kEUR from 1,166 kEUR for the third quarter of 2022.
Operating result amounted to 2,330 kEUR compared to (282) kEUR for the third quarter of 2022.
Net financial result was 1,319 kEUR compared to 2,173 kEUR for the third quarter of 2022.
The third quarter of 2023 contained income tax results of 363 kEUR compared to (478) kEUR in the third quarter of 2022.
As a result of the above, net profit for the third quarter of 2023 was 4,013 kEUR, compared to 1,413 kEUR for the same period in 2022. Total comprehensive income for the third quarter of 2023, which includes exchange differences on translation of foreign operations, was 3,242 kEUR compared to 1,638 kEUR for the corresponding 2022 period.
At September 30, 2023, we had cash and cash equivalents of 133,953 kEUR, compared to 140,867 kEUR at December 31, 2022. Gross debt amounted to 66,222 kEUR compared to 80,980 kEUR at December 31, 2022. As a result, our net cash position (cash and cash equivalents less gross debt) was 67,731 kEUR compared to 59,887 kEUR at December 31, 2022.
Cash flow from operating activities for the third quarter of the year 2023 was 8,143 kEUR, compared to 3,840 kEUR for the same period in 2022. Total capital expenditures for the third quarter of 2023 amounted to 3,920 kEUR.
Net shareholders’ equity at September 30, 2023 was 236,631 kEUR compared to 228,928 kEUR at December 31, 2022.
2023 Guidance
Mr. Leys concluded, “The revenue growth posted by each of our business segments during the first nine months of this year strengthens our confidence that our full-year 2023 revenues will be, in spite of the challenging macro-economic circumstances, well within our previously communicated range of 255,000 kEUR to 260,000 kEUR. At the same time, we are maintaining our Adjusted EBITDA guidance of between 28,000 kEUR and 33,000 kEUR for fiscal year 2023.”
Non-IFRS Measures
Materialise uses EBITDA and Adjusted EBITDA as supplemental financial measures of its financial performance. EBITDA is calculated as net profit plus income taxes, financial expenses (less financial income), shares of profit or loss in a joint venture and depreciation and amortization. Adjusted EBITDA is determined by adding share-based compensation expenses, acquisition-related expenses of business combinations, impairments and revaluation of fair value due to business combinations to EBITDA. Management believes these non-IFRS measures to be important measures as they exclude the effects of items which primarily reflect the impact of long-term investment and financing decisions, rather than the performance of the company’s day-to-day operations. As compared to net profit, these measures are limited in that they do not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in the company’s business, or the charges associated with impairments. Management evaluates such items through other financial measures such as capital expenditures and cash flow provided by operating activities. The company believes that these measurements are useful to measure a company’s ability to grow or as a valuation measurement. The company’s calculation of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. EBITDA and Adjusted EBITDA should not be considered as alternatives to net profit or any other performance measure derived in accordance with IFRS. The company’s presentation of EBITDA and Adjusted EBITDA should not be construed to imply that its future results will be unaffected by unusual or non-recurring items.
Exchange Rate
This document contains translations of certain euro amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from euros to U.S. dollars in this document were made at a rate of EUR 1.00 to USD 1.0594, the reference rate of the European Central Bank on September 30, 2023.
Conference Call and Webcast
Materialise will hold a conference call and simultaneous webcast to discuss its financial results for the third quarter of 2023 on Thursday, October 26, 2023, at 8:30 a.m. ET/2:30 p.m. CET. Company participants on the call will include Wilfried Vancraen, Founder and Chief Executive Officer; Peter Leys, Executive Chairman; and Koen Berges, Chief Financial Officer. A question-and-answer session will follow management’s remarks.
To access the conference call by phone, please click the link below at least 15 minutes prior to the scheduled start time and you will be provided with dial-in details. Participants can choose to dial in or to receive a call to connect to Materialise’s conference call.
https://register.vevent.com/register/BI67b272ddef5b405d8f5d004208bd450f
The conference call will also be broadcast live over the Internet with an accompanying slide presentation, which can be accessed on the company’s website at http://investors.materialise.com. A webcast of the conference call will be archived on the company's website for one year.
About Materialise
Materialise incorporates 30 years of 3D printing experience into a range of software solutions and 3D printing services, which form the backbone of the 3D printing industry. Materialise’s open and flexible solutions enable players in a wide variety of industries, including healthcare, automotive, aerospace, art and design, and consumer goods, to build innovative 3D printing applications that aim to make the world a better and healthier place. Headquartered in Belgium, with branches worldwide, Materialise combines one of the largest groups of software developers in the industry with one of the largest 3D printing facilities in the world. For additional information, please visit: www.materialise.com.
Cautionary Statement on Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our intentions, beliefs, assumptions, projections, outlook, analyses or current expectations, plans, objectives, strategies and prospects, both financial and business, including statements concerning, among other things, our estimates for the current fiscal year’s revenue and Adjusted EBITDA, our results of operations, cash needs, capital expenditures, expenses, financial condition, liquidity, prospects, growth and strategies (including how our business, results of operations and financial condition could be impacted by the current armed conflicts in Israel and Ukraine and governmental responses thereto, inflation, increased labor, energy and materials costs), and the trends and competition that may affect the markets, industry or us. Such statements are subject to known and unknown uncertainties and risks. When used in this press release, the words “estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,” “believe,” “forecast,” “will,” “may,” “could,” “might,” “aim,” “should,” and variations of such words or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon the expectations of management under current assumptions at the time of this press release. These expectations, beliefs and projections are expressed in good faith and the company believes there is a reasonable basis for them. However, the company cannot offer any assurance that our expectations, beliefs and projections will actually be achieved. By their nature, forward-looking statements involve risks and uncertainties because they relate to events, competitive dynamics and industry change, and depend on economic circumstances that may or may not occur in the future or may occur on longer or shorter timelines than anticipated. We caution you that forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are in some cases beyond our control. All of the forward-looking statements are subject to risks and uncertainties that may cause the company's actual results to differ materially from our expectations, including risk factors described in the company's most recent annual report on Form 20-F filed with the U.S. Securities and Exchange Commission. There are a number of risks and uncertainties that could cause the company's actual results to differ materially from the forward-looking statements contained in this press release.
The company is providing this information as of the date of this press release and does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise, unless it has obligations under the federal securities laws to update and disclose material developments related to previously disclosed information
https://www.nasdaq.com/press-release/linde-plc%3a-linde-reports-third-quarter-2023-results-earnings-release-tables-attached
Linde plc: Linde Reports Third Quarter 2023 Results (Earnings Release Tables Attached)
PUBLISHED
OCT 26, 2023 6:00AM EDT
Third Quarter Highlights
Sales $8.2 billion, down 7% YoY, underlying sales up 3%
Operating profit $2.1 billion; adjusted operating profit $2.3 billion, up 15%
Operating profit margin 25.2%; adjusted operating profit margin 28.3%, up 550 basis points
EPS $3.19 up 26%; adjusted EPS $3.63, up 17% YoY
Increased full-year 2023 adjusted EPS guidance to $14.00 - $14.10, representing 14% to 15% growth year-over-year
WOKING, UK / ACCESSWIRE / October 26, 2023 / Linde plc (NYSE:LIN) today reported third-quarter 2023 net income of $1,565 million and diluted earnings per share of $3.19, up 23% and 26% respectively. Excluding Linde AG purchase accounting impacts and other charges, adjusted net income was $1,783 million, up 15% versus prior year. Adjusted earnings per share was $3.63, 17% above prior year.
Linde's sales for the third quarter were $8,155 million, 7% below prior year but underlying sales increased 3% from 5% price attainment partially offset by 2% lower volumes.
Third quarter operating profit was $2,052 million. Adjusted operating profit of $2,306 million was up 15% versus prior year led by higher price and continued productivity initiatives across all segments. Adjusted operating profit margin of 28.3% was 550 basis points above prior year and 400 basis points higher when excluding the effects of cost pass-through.
Third-quarter operating cash flow of $2,520 million decreased 4% versus prior year driven primarily by lower engineering payments. After capital expenditures of $948 million, free cash flow was $1,572 million. During the quarter, the company returned $1,774 million to shareholders through dividends and stock repurchases, net of issuances.
Commenting on the financial results and business outlook, Chief Executive Officer Sanjiv Lamba said, "Linde employees delivered another quarter of strong results, with EPS growth of 17%, ROC of 25.6%, OCF of $2.5 billion and operating margin expansion of 550 basis points to 28.3%. This performance is driven by our relentless culture to optimize the base business while increasing network density and deploying capital to high-quality growth initiatives."
Lamba continued, "We have a proven track record of creating long-term, compounding shareholder value despite macro challenges."
For the fourth quarter of 2023, Linde expects adjusted diluted earnings per share in the range of $3.38 to $3.48, up 7% to 10% versus prior-year quarter. This guidance assumes a currency tailwind of 1% year-over-year and a 2% headwind sequentially.
For the full year 2023, the company expects adjusted diluted earnings per share to be in the range of $14.00 to $14.10, up 14% to 15% versus prior year and assumes no currency impact. Full-year capital expenditures are expected to be in the range of $3.5 billion to $4.0 billion to support growth and maintenance requirements including the $4.5 billion contractual sale of gas project backlog.
Third-Quarter 2023 Results by Segment
Americas sales of $3,629 million were 2% lower versus prior year. Compared with third quarter 2022, underlying sales increased 3% driven by 5% higher pricing, partially offset by 2% lower volumes. Underlying sales growth was primarily in the healthcare, food & beverage and chemicals & energy end markets. Operating profit of $1,074 million was 29.6% of sales, 320 basis points above prior year and 90 basis points higher when excluding the effects of cost pass-through.
APAC (Asia Pacific) sales of $1,639 million were 1% lower versus prior year. Compared with third quarter 2022, underlying sales grew 3% driven by 3% price attainment and stable volumes. Underlying sales growth was primarily in the chemicals & energy end markets, including project start-ups, and to a lesser extent the healthcare and manufacturing end markets. Operating profit of $459 million was 28.0% of sales, 220 basis points above prior year. Year over year cost pass-through was immaterial.
EMEA (Europe, Middle East & Africa) sales of $2,105 million were down 1% versus prior year. Compared with third quarter 2022, underlying sales grew 2%, driven by 6% higher pricing partially offset by 4% lower volumes. Operating profit of $634 million was 30.1% of sales, 820 basis points above prior year and 600 basis points higher when excluding the effects of cost pass-through.
Linde Engineering sales were $467 million, 44% below prior year, and operating profit was $116 million or 24.8% of sales. Order intake for the quarter was $633 million and third-party sale of equipment backlog was $3.6 billion.
Earnings Call
A teleconference on Linde's third quarter 2023 results is being held today at 9:00 am EDT.
Live conference call US Toll-Free Dial-In Number: 1 888 770 7292Germany Toll-Free Dial-In Number: 0800 000 0105UK Toll-Free Dial-In Number: 0800 358 0970Access code: 6877110
Live webcast (listen-only) https://investors.linde.com/events-presentations
Materials to be used in the teleconference are also available on the website.
About Linde
Linde is a leading global industrial gases and engineering company with 2022 sales of $33 billion. We live our mission of making our world more productive every day by providing high-quality solutions, technologies and services which are making our customers more successful and helping to sustain, decarbonize and protect our planet.
The company serves a variety of end markets such as chemicals & energy, food & beverage, electronics, healthcare, manufacturing, metals and mining. Linde's industrial gases and technologies are used in countless applications including production of clean hydrogen and carbon capture systems critical to the energy transition, life-saving medical oxygen and high-purity & specialty gases for electronics. Linde also delivers state-of-the-art gas processing solutions to support customer expansion, efficiency improvements and emissions reductions.
For more information about the company and its products and services, please visit www.linde.com
NON-GAAP Financial Measures
Adjusted amounts, free cash flow and return on capital are non-GAAP measures. See the attachments (Earnings release tables: https://eqs-cockpit.com/c/fncls.ssp?u=bc3b9657c4fa6b929957103487cb487e) for a summary of non-GAAP reconciliations and calculations for adjusted amounts.
Attachments: Summary Non-GAAP Reconciliations, Statements of Income, Balance Sheets, Statements of Cash Flows, Segment Information and Appendix: Non-GAAP Measures and Reconciliations.
*Note: We are providing adjusted earnings per share ("EPS") guidance for 2023. This is a non-GAAP financial measure that represents diluted earnings per share from continuing operations (a GAAP measure) but excludes the impact of certain items that we believe are not representative of our underlying business performance, such as cost reduction and other charges, any impairment or other charges related to scaling back operations in Russia as actions are defined and executed and as sanctions impact the Company's operations, the impact of potential divestitures or other potentially significant items. Given the uncertainty of timing and magnitude of such items, we cannot provide a reconciliation of the differences between the non-GAAP adjusted EPS guidance and the corresponding GAAP EPS measure without unreasonable effort.
Transfer of Stock Exchange Listing
Linde (NYSE: LIN) intends to transfer the listing of its ordinary shares from the New York Stock Exchange (NYSE) to the Nasdaq Stock Market (Nasdaq) on November 6,2023 after market close. Linde expects to commence trading as a Nasdaq-listed company upon market open on November 7, 2023 and will continue trading under the ticker symbol "LIN". The transfer to Nasdaq provides Linde with Nasdaq index inclusion opportunities in addition to certain cost savings.
Forward-looking Statements
This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by terms and phrases such as: anticipate, believe, intend, estimate, expect, continue, should, could, may, plan, project, predict, will, potential, forecast, and similar expressions. They are based on management's reasonable expectations and assumptions as of the date the statements are made but involve risks and uncertainties. These risks and uncertainties include, without limitation: the performance of stock markets generally; developments in worldwide and national economies and other international events and circumstances, including trade conflicts and tariffs; changes in foreign currencies and in interest rates; the cost and availability of electric power, natural gas and other raw materials; the ability to achieve price increases to offset cost increases; catastrophic events including natural disasters, epidemics, pandemics such as COVID-19 and acts of war and terrorism; the ability to attract, hire, and retain qualified personnel; the impact of changes in financial accounting standards; the impact of changes in pension plan liabilities; the impact of tax, environmental, healthcare and other legislation and government regulation in jurisdictions in which the company operates; the cost and outcomes of investigations, litigation and regulatory proceedings; the impact of potential unusual or non-recurring items; continued timely development and market acceptance of new products and applications; the impact of competitive products and pricing; future financial and operating performance of major customers and industries served; the impact of information technology system failures, network disruptions and breaches in data security; and the effectiveness and speed of integrating new acquisitions into the business. These risks and uncertainties may cause future results or circumstances to differ materially from adjusted projections, estimates or other forward-looking statements.
Linde plc assumes no obligation to update or provide revisions to any forward-looking statement in response to changing circumstances. The above listed risks and uncertainties are further described in Item 1A. Risk Factors in Linde plc's Form 10-K for the fiscal year ended December 31, 2022 filed with the SEC on February 28, 2023 which should be reviewed carefully. Please consider Linde plc's forward-looking statements in light of those risks.
File: Q3_2023_Earnings_Release_Tables
SOURCE: Linde plc
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